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How Ethereum can help the poorest individuals in the world

How Ethereum can help the poorest individuals in the world

While upper-middle-class, Western cybergeeks may be the most vocal supporters of cryptocurrencies, there is enormous potential for the world's poor and marginalized to benefit from these technologies.

Many people are disadvantaged because they lack access to banking infrastructure or credit, whether from an impoverished urban community in the United States or an isolated village in the Sri Lankan highlands. Ethereum and other cryptocurrencies provide numerous opportunities to assist these marginalized individuals, communities, and countries. These technologies have the potential to benefit the poor by lowering remittance fees, increasing access to financial institutions, combating inflation, and possibly even assisting in the abolition of corruption.

Cryptocurrencies have the potential to reduce remittance fees to developing countries

It is common for people in developing countries to have relatives in more affluent societies who send them money. For years, they have been at the mercy of services such as Western Union, which charge exorbitant fees. Startups have emerged in various countries that enable users to send money at a much lower cost. Rebit is a great example, as it allows its users to send money to the Philippines at a low price. A worker in the United States can convert their USD into Ethereums, and their recipient can withdraw the funds in pesos. This benefits foreign workers and their families, who sent nearly $30 billion in 2015.

Cryptocurrencies can increase access to banking for marginalized people

Many people in the developed world take credit cards and bank accounts for granted. It's difficult to believe that, according to the World Bank, up to 2 billion adults worldwide lack access to financial services.

While traditional banking services attempt to break into this multibillion-person market, cryptocurrency-related services also provide opportunities for the world's poorest to participate in the system. These technologies enable them to have a global bank account that they can access via the internet via an open-source wallet. With 70% of the world's population expected to own a smartphone by 2020 and initiatives like Google's Project Loon aiming to expand internet access in developing countries, there are more opportunities for these people to gain access to banking services via Ethereum. And this can help them improve their financial situation.

Using cryptocurrencies to combat inflation

Unstable currencies are a significant issue for many developing countries. Zimbabwe's dollar, for example, had a peak monthly inflation rate of 79.6 billion percent before abandoning it. Although this was an extreme case, some countries' political and economic instabilities gave their citizens and businesses little faith in their currency. They frequently convert their money into a more stable currency, such as the US dollar.

Cryptocurrencies like Ethereum give people in unstable economies another way to protect themselves from inflation. And this is one of the reasons why Vietnam's VBTC was the world's first live Ethereum exchange. If you want to trade Ethereum, you can do it through the Argentina is another country where Ethereum use has increased due to the volatility of their currency.

 Cryptocurrencies have the potential to assist those in need

Ethereum and cryptocurrency are not a cure-all and will not solve the world's and the underprivileged's problems at once. Instead, we should see them as tools that we can use to assist developing countries with proper planning and intentions. There are numerous ways that cryptocurrencies can benefit our world, including reduced remittance fees, increased banking access, combating inflation, and combating corruption. The pertinent question is whether we have the political will and compassion to use these technologies to help those who need them the most.

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