How-they-help-those-who-do-not-have-access-to

How they help those who do not have access to banking services

The Bitcoin Y other cryptocurrencies they have worked wonders on financial economies around the world. Spain would be an example of this. Although the legality of the cryptocurrency has been in question for the last two years, there are still many people who want to know how to buy bitcoins in Spain and, despite the price of Bitcoin, there are still many people who invest in it in the Spanish economy.

Buying bitcoins in the traditional way usually involves linking your bank account with the exchange. Unfortunately, there is a high percentage of people in the world who have little or no access to a bank account. There are a few reasons that explain it:

One would be bank fees. Some studies show that families end up leaving financial institutions due to their “excessive” and / or “unjustified” commissions. For families like this, there appears to be a lack of transparency on the part of the bank, which in turn leads to a lack of trust on the part of the family.

Another reason is the absence of services that a bank can offer. Having less money can sometimes limit the services available for your bank account. There are a number of qualifications that must be met in order to qualify for these services.

In addition, some communities do not have enough banks in their vicinity to use them regularly. The limited hours of banks also influence those who work shifts with irregular working hours.

There are undoubtedly more reasons that explain why there is so much population without access to banking services, but the ones we have mentioned are perhaps the most important. For the population without access to banking services, not having a bank account can lead to several problems. Fortunately for them, bitcoin and cryptocurrencies could be their salvation, as it would allow them to have their own financial passport in a world that requires having a bank account.

Peer-to-peer finance (P2P) as an answer

As mentioned above, buying bitcoins through traditional exchanges usually means having to link a bank account. Fortunately, there are peer-to-peer markets today (P2P), platforms that allow you to buy bitcoins with a wide variety of options, such as online payments (such as Skrill Y PayPal), gift cards (Amazon, iTunes, Walmart, etc.), and even cash in person.

The flexibility of these exchange platforms has allowed people to find creative ways to fix the problems (like buying bitcoins in Spain) that they would normally face if they needed a bank account. Peer-to-peer (P2P) markets turn bitcoin (and other cryptocurrencies) into a vehicle that can help you solve your everyday problems.

The effective combination of cryptocurrency and peer-to-peer finance has created several real use cases for those without access to banking services, allowing them to finally obtain their financial passport so that their presence is known to the world. Here are the top real use cases:

Remittances

The traditional means of making remittances, although it does not necessarily require a bank account, can be very time consuming and expensive. Money transfer operators (MTOare also not overly transparent about the status of your money. Using cryptocurrencies as a way to send remittances could not only speed up the process (it only takes a few minutes instead of days or weeks), but it would also be more profitable (much lower commissions than other traditional means).

Cryptocurrency remittances have recently started to be used more by expats sending money back to their home country. A report made at the end of 2018 reflects that a 15.8% of the public surveyed made their remittances in cryptocurrencies, which is a lower percentage than online payments (51%), money transfer services (50.9%) and traditional electronic fund transfers (25.7%).

Make payments

If you are used to making payments with an active bank account, you are probably not used to the obstacles other people face. In places like South America, Africa and Southeast Asia, they continually struggle to try to make payments, even with access to a credit or debit card, since they often have limitations on their cards, which prevent them from making the most basic purchases.

By using peer-to-peer (P2P) payment systems and cryptocurrencies to make their purchases, they are bypassing the limitations associated with credit / debit cards. By converting your fiat money into cryptocurrency, you are allowing yourself to enjoy the maximum financial freedom possible. For example, if your bank is imposing limitations on you, you can convert your money to bitcoin and therefore buy the item you need with bitcoin. This operation, instead of being carried out through a bank, would be done through two simple steps: send the bitcoins to the bitcoin wallet of your provider and this would then provide you with the desired item or service.

And just like with remittances, cryptocurrency payments are made worldwide, allowing you to send money to any country in the world in a matter of minutes.

Wealth preservation

There are many economies in the world that are having a hard time, experiencing extreme inflation. For example, Venezuela has experienced inflation in the last year of over one million percent. This means that Venezuelans see the value of their fiat currency decline every day.

As a form of survival, people are converting their money into bitcoins and other cryptocurrencies to prevent the value from dropping further. By continually investing in a peer-to-peer (P2P) platform, they can negate the volatility of most cryptocurrencies as they continually convert their money to different alternatives.

By continually investing in a peer-to-peer (P2P) platform, they can negate the volatility of most cryptocurrencies as they continually convert their money to different alternatives.

Peer-to-peer (P2P) markets have done something that no one ever thought they would do before: they have turned cryptocurrencies into more than just an investment opportunity, they have turned them into a way of survival for people who don’t have access to one. Bank account.

These cases are just the beginning of the good that cryptocurrencies can bring to society. And if you’re feeling as excited as I am, then we’ll be on this journey together.

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