Stablecoins are new alternatives for financial inclusion.
Financial inclusion
The first step of using financial services is to open a bank account. All the services like loans, remittances, online payments are only available when a bank account is opened. You need money, credit scores, ID numbers, passports and more in order to open a bank account. Most citizens living in developed countries have bank accounts. It’s not that hard. On the other hand, those living in developing countries like Southeast Asia, South America, and Africa have still troubles in opening bank accounts.
As we know, banks do not like the poor because those without capitals and credit scores do not help banks make profits. In addition, making global financial services for those without bank accounts is not easy for even Alipay or KakaoPay because financial institutions impose sanctions in order to block potential money laundering.
The daily average income in Nigeria is $6. That amount is $9 in the Philippines and it costs about $88 in South Korea. It means that one’s income is determined by inflation and average income of their countries, not by one’s ability. Average Koreans work from 9:00 to 6:00 in Korean companies, get paid in Korean won, pay taxes, and buy daily supplies. They get paid about 10 times the income of average Filipinos because they were born in South Korea.
Web3 and Stablecoins could be fresh approaches to financial imbalance and financial inclusion. Even Nigerians do no longer work in a coal factory for just $6 per day. If they have ability to compete in global marketplaces, the opportunity to earn an income on a global scale is now available to them.
New Alternatives
According to World Bank statistics, about one-third of 5 billion Internet users in the world do not have bank accounts. We call them ‘unbanked people’. They are allowed to access the Internet via smartphones and computer devices. However, most of them are not allowed to engage in financial activities because they don’t have bank accounts. Even these people can create cryptocurrency wallets and trade stablecoins with just a few clicks of mobile apps.
Currently, many blockchain companies are paying stablecoins for those globally working from home. Companies like Request, Taxbit, Wyre, MoonPay are building on-chain ecosystem, supporting paying salaries, calculating taxes, off-ramping based on blockchain. Within these web3 ecosystem, whoever providing values to global markets could get paid fair salaries. Blockchain and stablecoins can play a role as a gateway for these blue prints.
Exporting Financial Freedom
Web3 and stablecoins are a pathway to financial freedom. All the technologies are essentially supposed to be valuable to everyone. The benefits of all innovative technologies — electricity, automobiles, cell phones, bidets and more — spread from those early adopters to everyone over the globe. We are currently seeing that long-standing financial systems are essentially changing since the invention of Bitcoin in 2009. We are watching the birth of a new economy where all the money ownership, money transfer and the freedom of trade are available to everyone.
Find Out More:
- PIP official website: https://www.getpip.com/
- Social Pay: https://www.getpip.com/pip-extension
- PipMe: https ://pip.me
- Pay Button: https://www.getpip.com/pip-button
- Payment link: https://www.getpip.com/payment-links
- Invoice: https://www.getpip.com/invoice
- Checkout: https://www.getpip.com/checkout
