Crypto Is A Solution For The Unbanked

Learn About Sending Money without a Bank Account

There is a growing humanitarian culture behind cryptocurrency (crypto) that is changing the way we exchange assets with each other.

An asset can be anything of value such as money, goods, services, or even time.

An example that many people face is the transferal of money from one person to another person. This is also referred to as peer-to-peer exchange, meaning that one person or entity is transferring an asset to another person or entity. It sounds like a simple process, right? In reality, it can be stressful and expensive.

Keeping in line with the example above, let’s explore the current problems with exchanging assets, especially for those individuals who do not have a bank account. There are various reasons why people do not use banks — the majority are legitimate — however, tasks involving the exchange of assets becomes more difficult without a bank account. There are regulations and fees associated with sending money and therefore, you often pay 25% or more in addition to the amount you’re sending.

Here’s where crypto comes in to save the day! The very nature of crypto is to enable a safe, secure way for you to send and receive assets. Crypto assets are called ​coins​. You can invest in coins, and the coins can be exchanged into money. The most notable coin is Bitcoin which continues to be the flagship for success in the crypto community. There are several popular coins such as Ethereum (Ether) and Dash. For our example, we will use Bitcoin to show the benefit of using crypto as a means of exchanging funds without a bank account.

The best part of owning crypto is that other people, banks, governments, or corporations have no way to directly identify you. In other words, sending Bitcoin from the United States to someone who lives in France is completely anonymous. Nobody can identify you unless you tell them who you are. No worries, this is legal!

In addition to anonymity is the elimination of a third party processor, such as a bank. You can send and receive coins without a bank account and without expensive fees. The only thing you need is a cell phone with connection to the Internet so you can access your wallet — where you store your coins.
There is also the element of trust when using crypto. Most people don’t put cash in an envelope and mail it to someone else anymore. This is very risky and it isn’t a trusted method for sending money. It leaves you with no record of whether or not the person(s) you sent the money to receives it. Anyone who comes into contact with your envelope has the ability to open it and take the money out. Crypto eliminates this by giving you a permanent record that shows when you sent funds and when the funds were received by the person(s) you sent funds to. Remember, this is anonymous, so crypto is allowing for a fully trustworthy method of exchange.

Investing in crypto is a fairly painless experience. There are several crypto exchanges — websites where coins are bought, sold, sent, and/or received — that are recommended. In some places, there are even crypto ATMs which allow you to exchange your coins into money.

There are even more benefits of crypto that I’ll share with you in coming articles or videos. If you’re interested in learning more about crypto, please watch our videos and read our library of articles that will help you get started.