Ask yourself this question, what do we all have in common? No matter where you live, you need food, water, shelter.. and money. Nearly every trade we make needs money. A long time ago humans created currency in the form of goods, and nowadays we have paper money and access to our money through banking systems. (Hoffmann, 2015)
The most concerning thing is that the privilege of having access to a banking system is almost taken for granted by most people. It is easily accessed through ATM’s and even through our mobile phones. However, there are still places where people have no access to such privileges, which is probably hard to imagine, isn’t it? Not everyone is as lucky to have a bank account. Around 50%, which are 2.5 billion adults in the world do not have access to any sort of bank account (Cannucciari, 2016). We need to give all people a chance to have their own bank account at their disposal, which can open up opportunities for trade for many people in who are currently excluded from the financial systems.
Of course, we can give them access to a normal banking system, but this will probably still not be accessible to the poorer people. Mainly because they pay all kinds of fees for their accounts and the transactions they make. This would not make it beneficial for the small amounts of money they earn. Luckily, there is another solution that will help poor people and their families to make easy and cheap transactions.
Imagine this, there is a man named Ben. Ben emigrated to work and live in Kenia, and is a husband and a father, just like many others. However, Ben is separated from his family because they used to live together in Uganda.
In Kenia, Ben works,
for hours and hours.
To provide his family with money, to give his children a brighter future. He wants to send his hard earned money home, to his wife, to his children, to his family.
However, his earned money needs to be sent through Western Union. Which is a company who helps people without a banking system to send their money across countries. The problem with these transactions is that it is really expensive. If Ben sends 100 dollars back home, he has to already spent 15 to 20 dollars of fees just to process the transaction. Which is a huge percentage if you are poor and working to uphold your family.
Therefore, ladies and gentlemen. I am here today to emphasize the importance of the access to a financial system of bitcoins in third world countries. This gives people who do not have access to a banking system the opportunity to make better use of the money they receive without any middle man. Bitcoin does not have any sort of transactions fees which will help stimulate economic growth in third world countries. Technology like Bitcoin has the capacity to bring these people into the financial system. Since Bitcoin doesn’t care about borders, they can just send bitcoins to their family, in another country. If Ben’s family in Uganda has some way to spend bitcoins or a way to change bitcoins into local currency. It would just be quicker, cheaper and easier for Ben to send his money over and provide his family with a brighter future.
However, many African countries do not have access to such bitcoin systems. In particular, people living in third world countries. People in third world countries will be the kind of people who are looking for something new and are willing to take the risk of migrating to another country like Ben, to earn money for their family. Therefore, we need to make sure that people like Ben and his family get access to such financial systems. The opportunity of using Bitcoins as a financial system will give them the chance to finally have
Payments, but without a middle man,
investments without a broker,
loans without a bank,
record keeping without an accountant,
and even Charity without a trustee
The bitcoin system for third world countries will be global, secure, nearly instant and free from taxes. Giving third world countries the access to Bitcoins will give them the opportunity to the free exchange of information and currency which can fuel revolutions, help in a disaster and decrease poverty over time.