Back in 2015, Forbes featured an interview with William Blair partner Brian Singer on how bitcoin will end world poverty. According to Singer, the growing access to the internet through affordable devices could enable particularly those from emerging markets to use a cheaper payment system with a transparent means of recording transactions.
Many scoffed at the idea back then. Indeed, cryptocurrencies and blockchain had yet to reach the same level of popularity they enjoy today. But what a difference a couple of years make.
Despite some recent shakiness, cryptocurrencies have increased ten times in value since. We’re also seeing more organizations and governments recognize the value in blockchain as a transactional platform and new platforms such as Ethereum can now even facilitate smart contracts using the technology.But how does blockchain shape up in relation to Singer’s thesis today?
Can blockchain and cryptocurrencies now become the technology that truly levels the playing field for humanity and help continue the reduction of poverty?
Could Blockchain based technology and smart contracts be the game changer in the battle against poverty?
Financial inclusionAccording to the World Bank, in 2013,10.7 percent of the global population lived on less than $1.90 a day. While these figures have been in decline over the last few years, that percentage still equates to around 750 million people.Financial inclusion is considered a key factor to poverty reduction. It refers to the access of people to a formal financial system.
In the status quo, it’s the access to financial services such as banking that accounts for financial inclusion. Unfortunately, over 2 billion adults remain unbanked. In many of these developing regions, mobile money has taken the place of most financial services.
Blockchain’s disruption of the financial services sector supposedly changes this. Blockchain overcomes many of banking’s current limitations. Unlike banks, no physical branch presence is needed for blockchain to work. Since blockchain operates on a distributed network, there’s no need for a complex and expensive private infrastructure to run.
This saves on the costs that banks and telecom companies pass on to users through fees and other charges when using bank accounts or performing mobile transactions.
Blockchain startup Everex , which launched its ICO only a few hours ago and has already raised over 6 million USD (Roughly 27,000 Ethereum), considers financial inclusion as part of its mission. The company seeks to provide remittance services, microfinance, and fiat currency conversion through blockchain to the world’s unbanked population.
“The lesson learned from the previous decade, however, is that the real needs of the world’s unbanked population comprise inclusion, empowerment and easy access to the same financial instruments that allow industrial nations to provide their denizens with the social mobility they enjoy,” a recent Everex blog post said.
This material should not be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. I have no positions in any of the securities mentioned above....continue reading:
https://www.forbes.com/sites/nikolaikuznetsov/2017/07/24/how-emerging-markets-and-blockchain-can-bri...
Many scoffed at the idea back then. Indeed, cryptocurrencies and blockchain had yet to reach the same level of popularity they enjoy today. But what a difference a couple of years make.
Despite some recent shakiness, cryptocurrencies have increased ten times in value since. We’re also seeing more organizations and governments recognize the value in blockchain as a transactional platform and new platforms such as Ethereum can now even facilitate smart contracts using the technology.But how does blockchain shape up in relation to Singer’s thesis today?
Can blockchain and cryptocurrencies now become the technology that truly levels the playing field for humanity and help continue the reduction of poverty?
Could Blockchain based technology and smart contracts be the game changer in the battle against poverty?
Financial inclusionAccording to the World Bank, in 2013,10.7 percent of the global population lived on less than $1.90 a day. While these figures have been in decline over the last few years, that percentage still equates to around 750 million people.Financial inclusion is considered a key factor to poverty reduction. It refers to the access of people to a formal financial system.
In the status quo, it’s the access to financial services such as banking that accounts for financial inclusion. Unfortunately, over 2 billion adults remain unbanked. In many of these developing regions, mobile money has taken the place of most financial services.
Blockchain’s disruption of the financial services sector supposedly changes this. Blockchain overcomes many of banking’s current limitations. Unlike banks, no physical branch presence is needed for blockchain to work. Since blockchain operates on a distributed network, there’s no need for a complex and expensive private infrastructure to run.
This saves on the costs that banks and telecom companies pass on to users through fees and other charges when using bank accounts or performing mobile transactions.
Blockchain startup Everex , which launched its ICO only a few hours ago and has already raised over 6 million USD (Roughly 27,000 Ethereum), considers financial inclusion as part of its mission. The company seeks to provide remittance services, microfinance, and fiat currency conversion through blockchain to the world’s unbanked population.
“The lesson learned from the previous decade, however, is that the real needs of the world’s unbanked population comprise inclusion, empowerment and easy access to the same financial instruments that allow industrial nations to provide their denizens with the social mobility they enjoy,” a recent Everex blog post said.
This material should not be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. I have no positions in any of the securities mentioned above....continue reading:
https://www.forbes.com/sites/nikolaikuznetsov/2017/07/24/how-emerging-markets-and-blockchain-can-bri...