WEF considers Cryptocurrencies as a key tool for financial accessibility

WEF considers Cryptocurrencies as a key tool for financial accessibility

By bit.team

The World Economic Forum (WEF) believes that cryptocurrencies can play a crucial role in providing financial services to one third of the world’s adult population, about 2 billion people who, according to the World Bank, do not have bank accounts.

Cryptocurrencies are changing the financial world

People who are not covered by banking services usually have no tools and services to create savings, and this puts their future existence at risk.

The problem of lack of banking services is widespread not only in developing countries, but also in developed countries. The WEF noted:

“The Federal Reserve found that 22% of the adult population of the United States either do not have bank accounts or do not have access to them. That’s roughly 63 million Americans who either don’t have a bank account at all, or rely on “alternative financial services products” like money transfers, check cashing services, or payday loans to meet their financial needs.”

The mechanism of cryptocurrency is based on the blockchain technology, which allows participants to confirm transactions in the absence of a central authority. The WEF believes that this attribute will help democratize the traditional financial system and encourage greater engagement.

For example, almost one-third of Nigerians own some form of cryptocurrency that allows them to buy or sell goods and transfer funds across the border to family and friends.

Crypto-currencies are helping to protect people`s savings

Stablecoins, which are cryptocurrencies linked to traditional assets such as the US dollar, play an important role in protecting people’s assets. The WEF added that cryptocurrencies provide tools and services for creating value accumulation, such as tokenizing shares of companies such as Tesla, Amazon and Apple.

The statement reads:

“As they are tokenized, users can start investing in tokenized shares for as little as $ 5. This is possible because they can buy fractional parts of the token, which are essentially fractional parts of the stock.”

Cryptocurrencies such as Bitcoin and Ethereum, combined with mobile services such as Kenya’s M-Pesa mobile payment system, facilitate savings and payments. Recently, 10T Holdings co-founder Dan Tapiero acknowledged that Bitcoin is raising the Generation Z savings culture.

He believes Bitcoin is a gift to Generation Z, born between 1997 and 2015, because it elevates their savings culture. BTC is also popular with the previous generation, millennials, because in the eyes of many of them, it is the digital version of gold.

This information, combined with the news that new US President Joe Biden plans to include a $ 1.9 trillion stimulus package to save the economy, is a launching pad for Bitcoin as it seeks to go to the moon.