At a crypto event that I recently attended it surprised me to learn that most people there couldn’t really explain how crypto could be useful beyond just trading. So I thought it made sense to write about the bigger picture, on crypto’s potential for solving critical issues globally.
Crypto is more than just for speculation. For billions of people in the emerging markets it presents an opportunity to level the playing field. Before we dive 🐬 in lets define some key benefits of crypto.
Crypto is borderless
It uses open internet protocols and people anywhere in the world can transact with each other directly bypassing all gatekeepers. It is very hard for any entity to completely block crypto transactions. The internet always finds a way.
Crypto replaces banks
With crypto people are their own banks, all they need is an internet connection and a smartphone
Crypto is unbiased
As the famous saying goes “On the Internet, nobody knows you're a dog". This is doubly true for crypto for in crypto you are just an address.
How Crypto Fixes the World
The potential is massive. Crypto provides solutions to massive problems that historically have been considered hard to fix.
1.7 billion people in the world are unbanked
Without back accounts they have no way to save, have access to credit and other financial services and still have to deal in paper money which is risky. And though people may not have bank accounts the spread of internet and smartphones have been rapid.
1 billion+ living in countries with galloping inflation
In countries like Zimbabwe, Venezuela, Sudan, Lebanon, Argentina and many more people have lost trust in their native currency and are desperately looking for ways to preserve their life savings in the face of a devaluing currency.
700 billion global remittance market
Remittances are an essential source of income for millions of families living in the Global South. The current remittance channels are plagued with inefficiencies it takes days and high transaction fees to send hard earned money home.
Organizing for good is not easy
Instead of focusing on the cause, activists and changemakers have to first deal with the bureaucracy - tons of paperwork, unnecessary requirements and months of wait before one can start a nonprofit. Smart contracts, MultiSig wallets and DAOs provide an alternative - a permissionless, trust based systems for decentralized collaboration.
Crypto donations are growing
The number of people holding crypto assets are growing, an NBC poll found that one in five Americans has invested in, traded or used cryptocurrency A new class of crypto millionaires and billionaires have emerged and many others are making their money trading in crypto assets. Crypto will be a new driving force for social good initiatives and has already demonstrated its giving power during India COVID and Ukraine relief efforts that saw crypto donations of $1 Billion and over $100 Million respectively.
Crypto presents a massive opportunity to build a financially inclusive and fair world. Bringing in new money and new ways for collaborating around causes. People in the Global South powered by phones and the internet will write their own destiny. Grassroot nonprofits have a big role to play, providing crypto education and unbiased guidance to this new rising class.
To a better future for all ✌️
Go Deeper 🐇
The 2021 Global Crypto Adoption report shows top 19 countries on crypto adoption index are from emerging markets with remittances and currency devaluation being the drivers of adoption.
Crypto remittances are a lifeline for the world's most vulnerable
Impact Market decentralized income distribution protocol
How crypto enables economic freedom - Brian Armstrong, Coinbase CEO
Check Your Financial Privilege - A Book by Alex Gladstien of Human Rights Foundation
60 Minutes, the CBS news show features El Zonte, a small town in El Salvador that has made cryptocurrency part of their everyday life.
If you have any questions or ideas reach out to me on Twitter or leave a comment on my Substack.
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