Emerging nations are the fastest growing regions in crypto adoption and the growing presence of neo-banks plays the biggest role in this growth. Could these innovative platforms be the solution to financial inequalities and the lack of adequate banking services for over one billion people?
As Satoshi once remarked in his now-stopped social messages, “Bitcoin would be convenient for people who don’t have a credit card or don’t want to use the cards they have”. Emerging nations whether in Africa, Latin America or South East Asia could resonate more truly to this statement than others. Over the past half-decade, the growth of neo-banks in developing countries has caused a revolutionary change in how the populous interact in their economies and a radical change in their financial systems.
Crucially, the billions of unbanked and underbanked are finally integrated into the global financial systems, despite the lack of efficient banking structures in their respective nations.
This article will break down how cryptocurrency is benefiting the unbanked (and underbanked) and the role neo-banks play in providing financial services to countries with little hope of having a stable banking infrastructure. The piece further looks at the role developing countries play in growing the crypto ecosystem and various technological advancements in the industry as a result of rapid adoption across Sub-Saharan Africa, Latin America and Southeast Asia regions.
Financial Inequality in Underserved Economies
According to World Bank reports, over 1.2 billion people across the world are either unbanked or underbanked. Developing countries remain the most affected nations with over 50% of the population having little to no access to solid banking infrastructure or basic financial services such as loaning facilities, savings accounts, etc.
The advent of blockchain technology and cryptocurrencies sparked a drastic change in the global financial system, providing previously unavailable financial systems to citizens of these nations. The emergence of this decentralized industry is becoming a force in the global financial landscape, redefining traditional currency, transactions, and financial systems.
Cryptocurrencies, powered by blockchain technology and cryptographic principles, are opening up the financial world to developing nations, allowing…