Crypto Reaching Markets Where Banks Can’t
December 22 2021 - 7:06AM
NEWSBTC
Cryptocurrencies have had an incredible year, surpassing the $3
trillion mark at one point in 2021. According to Chainalysis
research, crypto adoption increased by more than 2300% in 2021 as
compared to 880% in 2020. This adoption was mainly seen in
developing nations of Asia, including Vietnam, India, and Pakistan,
proving that crypto has been easily accessible to emerging and
under-developed nations where banks have failed to create a
suitable foundation. With easy internet access, crypto has expanded
to every corner of the globe, thanks to its features like fast and
cost-effective transactions, transparency, complete ownership of
money, and strong privacy. The flippening of TradFi has begun with
crypto reaching the ends of the world. Banks Fail to Reach Billions
Banks have always been plagued by many challenges. One critical
problem is that the majority of banks deliver services through
intermediaries who demand high fees. For example, making a large
purchase of a house, car, or land involves a lengthy procedure with
several hoops to go through, including attorneys, notaries, and
other professionals that cost an arm and a leg. Another issue is
that banks are centralized, which means they are controlled by the
authorities, raising the possibility of devaluation or theft.
Moreover, today’s banking infrastructure is such that banking
services are inaccessible to around 1.7 billion adults worldwide.
Similarly, the sluggishness with which TradFi service providers,
including banks, operate has been a complete headache for
customers. To make things worse, several banks have been the
victims of different scams and identity thefts. According to the
Federal Trade Commission (FTC), approximately 4.8 million identity
theft and fraud claims were registered in 2020 in the U.S,
representing a 45 % increase from 3.3 million in 2019. Crypto
Brings Financial Services to Everyone Although banks have retained
their dominance in TradFi, they have failed miserably to reach a
major chunk of the adult population. Thankfully, with the advent of
cryptocurrencies, finance has become much more accessible to the
masses and it is successfully banking the unbanked and underbanked.
The entry barrier of opening a bank account in TradFi has been
replaced by easy-to-setup crypto wallets. These wallets have given
users access to all global cryptocurrencies, loans, additional
revenue sources, wealth-building resources, and easy money
transfers to anybody anywhere in the world with just a smartphone.
Moreover, the blockchain technology underpinning cryptocurrencies
has eliminated the need for third parties, dramatically lowering
the time taken to settle transactions and the costs connected with
them. Also, because of its decentralized nature, no single person
or institution is able to control, devalue, or take away the funds
from consumers, offering them complete control over their money. A
rising example of a crypto platform offering easy accessibility to
financial services through crypto is Coinovy. It is simplifying
crypto for everyone by making it easy for them to buy, sell, and
trade securely. While providing transparency and efficiency to
everyday digital asset finances, Coinovy also intends to bridge
crypto and traditional economies. With its decentralized digital
finance application, Coinovy is simplifying fintech through crypto
to fiat (C2F) transactions along with giving bank-like features to
the unbanked. Crypto Over Banks: A Viable Alternative? The present
economic system is highly centralized as banks have complete
control over the contemporary global financial infrastructure. They
are dominating the economies of the vast majority of countries
across the world. Although it has some advantages, this type of
centralized organization concentrates too much power in the hands
of a single authority that could result in severe economic
downturns. However, crypto could solve this as the technology
behind it is based on algorithmic trust, and its decentralized
approach could be a better alternative to the present system. With
the advent of blockchain and crypto, the future of finance would be
more transparent, fast, and secure.
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