Blockchain can empower the unbanked and underprivileged from "summary" of Blockchain Revolution by Don Tapscott,Alex Tapscott
Blockchain technology has the potential to bring about significant positive changes for those who are currently excluded from the traditional financial system. By providing a secure and transparent way to store and transfer value, blockchain can empower the unbanked and underprivileged individuals around the world. This technology allows for peer-to-peer transactions without the need for intermediaries, reducing costs and increasing efficiency. As a result, individuals who do not have access to traditional banking services can now participate in the global economy. One of the key advantages of blockchain technology for the unbanked and underprivileged is the ability to create digital identities. Many individuals in developing countries lack formal identification documents, making it difficult for them to access financial services. With blockchain, individuals can create secure digital identities that are stored on the decentralized ledger. This enables them to prove their identity and access services such as banking, healthcare, and education. Moreover, blockchain technology can provide a more inclusive financial system by enabling micropayments and microloans. Many unbanked individuals only need small amounts of money to start a business or cover basic expenses. Traditional financial institutions often overlook these individuals due to the high costs associated with serving them. With blockchain, individuals can access small loans and make small payments at a lower cost, opening up new opportunities for economic empowerment. Another way in which blockchain can empower the unbanked is by enabling them to participate in the global remittance market. Many individuals in developing countries rely on remittances from family members working abroad to meet their financial needs. However, traditional remittance services are often slow and expensive, eating into the funds that are sent. Blockchain technology can facilitate faster and cheaper cross-border transactions, allowing more money to reach the intended recipients.- Blockchain technology has the potential to revolutionize the way financial services are delivered to the unbanked and underprivileged. By providing secure digital identities, enabling micropayments and microloans, and facilitating cross-border transactions, blockchain can empower individuals who have been excluded from the traditional financial system. This technology has the power to create a more inclusive and fairer financial system for all.
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