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How Bitcoin Boosts Financial Inclusion to Empower the Unbanked

When Satoshi Nakamoto launched Bitcoin, they had this notion in mind. They knew that accessing and using financial services reduces poverty while enhancing economic growth. While Bitcoin dominates the crypto world, other digital currencies have emerged. Some are even products of various countries' central banks. For instance, you can invest and try luck in oil trading with online trading apps like Oil Profit. Nevertheless, many see Bitcoin as the beacon of hope for those with limited access to financial services. Here's why.

Easy Access

Bitcoin allows individuals to access and use financial services from their mobile devices. To set up a crypto wallet and start receiving Bitcoin, you require a Smartphone that connects to the internet. That way, you can receive Bitcoin payments and transfer them. Also, you can join crypto exchanges to trade Bitcoin for profits.

Currently, several decentralized finance platforms provide various services to the unbanked. For instance, you can use these platforms to save money and access loans and insurance without the restrictions of traditional banks.

Faster and Low-Cost Transactions

Conventional financial institutions charge high fees for most transactions, including international remittances. Bitcoin does not require intermediaries because transactions are peer-to-peer, reducing costs significantly. When El Salvador made Bitcoin a legal tender, citizens' remittance costs dropped by 65%. Thus, even small businesses can lower transaction costs by embracing Bitcoin as a payment method.

Besides, Bitcoin transactions are faster because they do not involve intermediaries. Miners validate Bitcoin transactions within minutes. Thus, merchants can receive payments faster and invest funds in their operations by embracing this cryptocurrency.

Borderless Transactions

Bitcoin's decentralized network facilitates cross-border transactions without intermediaries. This cryptocurrency enables individuals to transfer and receive funds globally without traditional bank accounts. And this is particularly beneficial for individuals in places with limited conventional banking infrastructure and migrants.

Financial Empowerment

Satoshi Nakamoto wanted people to enjoy total control over their finances. This cryptocurrency can act as your bank. And you can access it anytime, anywhere. And this is particularly vital for people in places with economic and political instability or limited banking access. Bitcoin enables you to preserve wealth, enjoy financial autonomy, and protect your investment against inflation.

Entrepreneurship Opportunities

The unbanked population can access the global economy by embracing Bitcoin. This digital currency enables individuals to engage in digital entrepreneurship by fostering the creation and growth of new business models. And this promotes economic growth by creating opportunities that individuals can exploit and boost their livelihoods.

Final Word

Bitcoin is a beacon of hope for the unbanked populations in many countries. It promotes financial inclusion by enabling borderless transactions, enhancing access to financial services, empowering people with financial autonomy, and reducing transaction costs. If the unbanked population embraces Bitcoin, it can exploit the opportunities that Bitcoin presents and achieve economic empowerment by participating in global economic activities. Nevertheless, understanding how this virtual currency works and the economic growth opportunities it presents is vital for unbanked and financially excluded people to benefit from it.

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How Bitcoin is boosting financial inclusion & empowering the unbanked - Business Insider Africa