One of the major flaws of the global financial system to date remains its inability to bank the entirety of the population. According to a report, over 1.7 billion across the globe are unbanked even today. This means that they do not have access even to the bare minimum financial facilities. In this situation, the rise of cryptocurrencies provides a ray of hope for the unbanked, under-represented, and under-developed population to get access to world-class financial facilities.
Being purely digital assets, cryptocurrencies are poised to create a financial system that can be accessed worldwide through the internet. This eliminates the need for brick-and-mortar banks, creating financial opportunities even in the remotest of places. But, these digital assets that are characterized by global reach, ironically still lack global acceptability.
Why is Mass Adoption Still a Problem?
There are 300 million crypto investors worldwide. While this number seems huge at first, it is minuscule in comparison to the world population. The majority of the population still seems ambivalent to this new asset class. This is because, for an average user, cryptocurrencies seem to serve no real purpose. There are very few use-cases in the real world and converting crypto investments to fiat for everyday use is far more complicated than it seems.
An everyday person would not prefer a currency that they cannot easily access, making the crypto industry as a whole unappealing to them. So, what finally seemed like an opportunity to bank the world's population became a luxury store of value for the rich.
The key to eliminating this problem lies in creating real world use-cases for cryptocurrencies by simplifying crypto-fiat conversions. If people could use cryptocurrencies in their everyday lives for shopping, payments, and purchases, they'd be more than willing to adopt. This is why there seems to be a rise in Crypto-Fiat DeFi protocols.
Creating Real Use-Cases for Crypto
The goal of these crypto-fiat (C2F) platforms is quite simple. Through an easy on-boarding and simplified conversion mechanism, they make it possible for people to use cryptocurrencies in their everyday lives. They eliminate the hassle of cross-border fees and delays, making the whole ordeal even more appealing for users.
One such C2F platform is Bitstamp. Bitstamp has been operating since 2011 and places no virtual limits on withdrawals. This means that users can even encash millions of dollars worth of investments within minutes. But of course, this isn't enough. For C2F conversions to happen smoothly, there needs to be proper liquidity and wallet security. In such cases, platforms like Coinovy come in handy.
Coinovy allows users to withdraw cryptocurrencies onto a global debit card that they can then use for purchases. Moreover, this platform also issues an international bank account number (IBAN) through which they can send and receive payments from over 150 countries. With a secure multi-currency wallet and a built-in-exchange with over 100 trading pairs, the problems of liquidity and security are also taken care of.
Banking the Unbanked; Finally a Reality?
C2F platforms are a huge boon to the crypto industry and there is a dire need of more such platforms. By making it easy to use cryptocurrencies for everyday things, they eliminate the need for having real banks once and for all. In doing so, they help realize the longstanding dream of banking the unbanked population of the world.