How blockchain companies like GoldFinX and Coinsbit can improve financial inclusion
There has been a lot of talk concerning cryptocurrencies and the benefits that they provide in the past few years. Assets that once started out as being just a passing fad have become some of the most profitable in the world, and for now, there isn’t much that can slow their adoption.
Last year, Bitcoin was able to outperform every other investment vehicle in terms of real returns and profitability. Despite the fact that the asset started the year trading down and recovering from a market downturn that eroded about 80 percent of its value, the top cryptocurrency was still able to provide better returns on investments than gold, US bonds and treasuries, and even the top-performing company stocks of theyear.
The financial inclusion prospects of cryptocurrencies
Evidently, the ability of cryptocurrencies to make people rich and improve their wealth has been proven beyond any reasonable doubt.
However, while all of that is true, it’s also important to shed light on an important attribute of cryptocurrencies that doesn’t see, to get as much attention as it should – the ability of these assets to provide financial inclusion to millions across the world.
In this guide, we’ll check out some of the top financial inclusion challenges and how cryptocurrencies can mitigate them.
Reduced remittance costs
One of the most significant financial inclusion challenges that developing countries have faced so far is with effective remittance.
Currently, the global remittance system is based on the activities of developing countries’ citizens who have gained exposure to the developed world. To send money back home, these people rely on intermediaries like MoneyGram, Western Union, Uni transfer, and more. However, the fees collected by these services have been too exorbitant.
According to figures published by the World Bank in 2017, developing countries recorded about $441 billion in remittances in 2016 – a figure that represents over half of the recorded remittance figures around the world. However, emittance fees in Sub-Saharan Africa as an average of $20 for $200 – the highest fees recorded in the world
However, cryptocurrencies can help to reduce these fees. International money transfers can be conducted in a matter of minutes, and with Bitcoin transfers costing just a few cents, fees can be significantly reduced.
Banking the unbanked
Low-income countries have had to deal with insignificant financial inclusion levels for decades now. According to figures released by the World Bank, there are still over 2 billion people around the world who don’t have access to banking services. Most of these people live in third-world countries, with regions like Chad, Pakistan, Cameroon, and Yemen seeing the higher numbers.
In these regions, less than 15 percent of the adult population can access banking services. Those who do have are still unbanked, meaning that they still can’t access premium banking services. With an inability to access banking services, these people are unable to access global commerce activities.
However, cryptocurrencies can help bring an end to this issue as well. With digital assets, millions of unbanked people across the world can access the banking services and financial instruments that they need, thus bringing them, in a way, on par with people in second and first-world countries.
Thanks to the increased level of penetration that telecommunication has achieved, crypto banking is now possible, and the reach of these assets is considerably wider than it has ever been.
Improved banking services can also help to bolster the small and medium-scale businesses in these countries. Local merchants can get their goods to more people, both domestically and internationally.
Then, there’s the prospect of enhancing international payment systems. The global payment and commerce systems are still denominated in dollars, and the requirements for special receipts and systems for payment are still high. This is a significant challenge for small businesses, as they have no means of getting money in foreign currencies. By serving as a medium of exchange, cryptocurrencies can help to bridge this gap too.
GoldFinX and GiX: On a mission to bring crypto benefits to everyone
With all of these and more being bolstered, cryptocurrencies can effectively enhance financial inclusion, while also providing holders with a means to develop and grow their wealth. For the first time in history, it is possible for interconnection to be achieved, and cryptocurrencies will be able to help usher in this new future.
So far, however, there are some firms that have been able to take the charge and bring the potential of cryptocurrencies to the forefront.
One of them is GoldFinX
, a next-generation FinTech project that has been built to deliver long-term value to investors. GoldFinX harnesses the power of two powerful economic forces – cryptocurrencies and gold – to allow both institutional and retail investors to tap into a secure market that can help them to grow their wealth, while also improving lives.
GoldFinX eliminates the guesswork, focusing on delivering long-term value through a robust business model and the expertise of professionals that have been in the financial industry for decades. For now, the initial phase of the company’s roadmap is estimated to reach €15 billion in revenues within the first ten years.
The team behind GoldFinX have built GiX, a fair-trade cryptocurrency which value is tied to that of gold. GiX recently got approval to trade on top cryptocurrency exchanges Coinsbit
, Simex and P2PB2B. Coinsbit has a global audience, thus bringing GiX to investors across the world. The asset has quick deposit and withdrawal replenishment, thanks to partnerships with payment processors like MasterCard and VISA. The asset is on a mission to bolster faith in the cryptocurrency space, thus showing investors that they can enjoy the best of the market even now.
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