Blockchain Providing Bridge for Unbanked, Lifting Global Economy
Blockchain technology could create tens of millions of jobs a trillions in economic growth, give billions of unbanked access to traditional financial system
With the increasing price of Bitcoin and Ethereum bringing attention to Blockchain technology, corporations are researching ways the technology could be used to optimize their existing business processes.
More than $16 bln lost in identity thefts and frauds
Considering the billions of dollars lost in fraud and online identity thefts, one of the increasingly impactful areas for Blockchain technology is in securing payment transactions. With this goal in mind, a new Blockchain company called UTRUST is taking on the challenge of becoming the first online cryptocurrency payment platform to offer consumer protections.
Nuno Correia, CEO of UTRUST, says:
"We aim to create an infrastructure that provides the benefits of fast, secure, convenient, and inexpensive cryptocurrency transactions alongside the world’s first cryptocurrency payment protections. Our goal is to democratize the world of altcoins and Blockchain technology to ensure that anyone can benefit from instantaneous, transparent and cost-effective transactions, irrespective of where they live and [their] level of education."
Using digital currencies, UTRUST aims to provide access to the mainstream financial system for the growing unbanked population worldwide, which according to the World Economic Forum is around 2 bln. The company recently raised $1.5 mln in their pre-ICO.
Cryptocurrencies will be used as daily payment method
Currently, most users are treating cryptocurrencies as speculative assets rather than using them in daily life. Given the sector’s exponential growth and the way Blockchain technology is becoming increasingly mainstream, many are optimistic that digital currencies will be used more as a currency and less as a speculative asset. With the aid of platforms that help rebuild trust in online transactions, cryptocurrencies will likely gain more traction as a mainstream payment method.
Providing a bridge for the unbanked through cryptocurrencies
With 2.5 billion unbanked people worldwide to benefit from transacting with the mainstream financial system, it is estimated that Blockchain technology could result in 95 mln new jobs in emerging economies and provide a boost to these economies of up to $3.7 trln.
Forbes contributor Nikolai Kuznetsov suggests that Blockchain has the ability to overcome current banking limitations, making it an ideal solution for the growing unbanked population in developing countries.
“Unlike banks, no physical branch presence is needed for Blockchain to work. Since Blockchain operates on a distributed network, there’s no need for a complex and expensive private infrastructure to run. This saves on the costs that banks and telecom companies pass on to users through fees and other charges when using bank accounts or performing mobile transactions.”