The issue of the digital divide in modern times is vast and, especially for developing countries. Mobile and Internet penetration is increasing in many regions, but internet availability remains low and affordable. This is where cryptocurrencies can make a massive difference, as one of the fundamental differences between Bitcoin and traditional money is that it can work 24/7/365. At the same time, banks are often shut for part of the day, thus reducing access for an underserved population. Paying bills can be a nightmare for people who are living in remote parts of Africa or Asia and living on a budget. This is why Bitcoin, digital yuan alongside its native cryptocurrencies, is ideal for making digital payments.

Bringing banking to the unbanked

There are millions of people all over the world who still lack access to basic banking services. Traditional banking networks do not cater to everyone in the world, and the region in which the bank is located will often have a large influence on how fast the system moves and how many services they provide. A two-way street with blockchain . Blockchain technology can be used to bring together the unbanked with traditional financial institutions. This could help increase customers who can access services such as financial products, loans, and savings accounts. The whole process is decentralized without needing a third party to help set up and manage transactions.

The future of finance

Financial technology (or FinTech), means that small and medium businesses across the globe can access and use payment services and real-time solutions to get access to capital and the benefits of financial inclusion, with the least amount of hassle. As more and more individuals and businesses find that they are better off using digital services, alternative finance, and even cryptocurrencies as a viable alternative to traditional banks, it is no surprise that they are proving to be very popular, particularly among the tech-savvy millennials who are adopting it in their droves. Opinions on cryptocurrencies are split.

How cryptocurrencies can help bank the unbanked

The penetration of smartphones in emerging economies has increased significantly over the past decade and is expected to continue to grow in the coming years. The number of smartphone users in China has increased from 15 percent of the population in 2008 to over 56 percent in 2016, and in India, from 8 percent of the people in 2008 to 75 percent in 2016. This represents a big opportunity for financial institutions to bring the unbanked into the formal financial system. Bitcoin has been the primary cryptocurrency in the developing world and has even inspired some businesses to develop digital wallets based on it. These mobile digital wallets are designed to be used with bitcoin. They are essentially a digital wallet that you can download onto your smartphone.

Conclusion

At the same time, some misconceptions come with cryptocurrencies and their use. Many people don't think about them as a digital currency like a bank account, debit card, or mobile phone, but only as a store of value. And that could be a major issue for us all. The fact is that many people in the Western world have a lot of cash sitting in their accounts. And in the developing world, it is also the case. That's why we need to find a way to balance these two conflicting views. But just because we can, doesn't mean we should. And we can. Cryptocurrencies are a very valuable tool, which is not being utilized fully. And that's something we should all be concerned about. Yuan Pay Group is a government-backed platform that is secured and trustworthy. Invest now!!