According to the World Bank around 2 billion people in the world do not have a bank account. That is almost 1 person in every 3. It can seem hard to believe today. Especially for those of us who haven’t ever know any different. It seems even harder to live without an account today, with online banking, contactless payments, and the vast amounts of things we buy online.
But for those 2 billion people it is real life. An existence based on cash. One where loans are impossible to get and cheaper online products are nothing but a distant dream. Almost all of these people are living in the developing world.
How can we as a cryptocurrency help to give these people more options and possibilities, and even the chance to borrow money? That is what this week’s blog is all about.
Why do People Not Have Bank Accounts?
Before we can find a solution to why so many people don’t have access to a bank account. We must first understand why they don’t. As we mentioned, almost all of these people live in the developing world. For this reason, these people are some of the poorest in the world. This is why, according to research, not having enough money is cited as the most common reason for not having a bank account.
This is because for banks the cost of having the accounts and offering their service costs more than the money they make from having these accounts. The reality is that profits are coming before people. And why you and I are welcomed with open arms by every bank that we walk in to. So much so that everywhere they are asking us for our custom. From switching current accounts (to save money), to loans and credit cards.
Another big problem when it comes to banking in the developing world is access to a bank. In rural areas, it may take many hours to reach the nearest town or city where one is located. Even if you have the means or money to get to the bank. It could well be a time sacrifice that many people are not able to make.
This is the great thing about cryptocurrencies. Nobody is denied the possibility to have them. Regardless of how much money they have or where they live. All they need is a smartphone with access to the internet.
The Power of a Bank Account
Having a bank account provides so many possibilities. A safe place to store your money and earn interest. Bank cards that enable you to make purchases in person or online. And, lastly, the most important of all. The possibility to borrow money. For us, in the developed world it is almost impossible to go through our lives without borrowing money at some point. Whether it is a loan to study at university, for your first car or a mortgage for your home. Having access to borrow is what gives us the chance to study and buy these things. For those without an account doing and buying these things is just not possible.
However, as discussed, for many people getting a bank account is just not possible. This is where cryptocurrencies offer these 2 billion people the greatest possibilities. Because all you need is access to a smartphone and then you have the possibility to get your wages paid to you in cryptocurrency, buy what you need at the local shops, pay your bills and even buy things online.
It may not seem like much to most of us, but for hundreds of millions of people, this is a great opportunity to create a better life for them and their families. A small business owner might begin to start shipping their products aboard. Another might start buying things from abroad to sell locally. Others might just want a safe place to keep their money. Nobody would want their life savings stolen from their home, money that they may have been saving for decades.
A Brighter Future with Dagcoin
If you have been following us, you know that we have a strong mission and aim to develop Dagcoin into a global mainstream cryptocurrency that is easy to use and accessible for anyone, anywhere in the world.
This is why we are taking what you can currently do with a cryptocurrency and taking it to the next level. Right now, as mentioned, you can receive your salary, transfer money, and buy and sell goods using cryptocurrencies. However, the nature of blockchain and most cryptos is that all transaction information is kept private. This means that users do not have a financial history. A financial history that is needed if you want to borrow money.
With Dagcoin, you can receive your salary, pay your bills and buy everything you need, and best of all, you have a clear record of it all, just like with a regular bank statement. Having a financial history could give you the possibility to borrow money to send your kids to university, buy a home, or start/expand your business. An opportunity many of the world’s poorest people could never dream of until now.
It has often been said that people don’t want charity, they just want the opportunity to improve their lives for themselves. Dagcoin gives people that chance, and we sincerely hope that the currency changes hundreds of millions if not billions of people’s lives for the better.
Having a bank account, bank cards, and having the possibility to borrow money in the developed world is normal and taken for granted. For the two billion people around the world that do not have access to a bank account their lives and opportunities are much more restricted. For us, we can borrow money to study, buy a car, start a business or buy a home. Without an account or a financial history, it is not possible to borrow to do these things.
So why don’t banks let these people set up accounts? Simply they are seen as too poor and unprofitable. This is where cryptocurrencies come in. Anyone can set up a wallet and start using them, as long as they have a smartphone.
With cryptocurrency, you have the possibility to do almost everything you can with a normal bank account. Buy and sell goods, receive your salary, buy things at the local store or online. However, blockchain and other cryptos keep all transaction history secret. Not having a financial history is what stops people borrowing money. And this is why, all Dagcoin transactions are stored and visible, so people can build a financial history that they can use to one day possibly borrow to improve their lives for the better.
Let’s make the world a brighter place with Dagcoin.
Nils Grossberg is an entrepreneur from Tartu, Estonia. Nils Grossberg graduated from the University of Tartu with a bachelor’s degree in History. He is the co-founder and former CEO of Dagcoin OÜ, the software company behind the development of Dagcoin cryptocurrency and its ecosystem.