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Many people have wanted to know if the future of our financial system be defined by digital currencies or not. There are many such instances where investors have debated against this theory. Many said that this will be our ultimate way of finance and some say there is no defeating the traditional methods.
If we look closely there are so many issues with the traditional ways that it makes us believed that maybe digital currency is our true future? There are many people who still are not connected with the traditional bank system. These are the people who have not stepped into a bank ever in their lives. I am talking about people staying in the far south such as Asia and Africa.
Why people are not going to banks?
The people who have not been in a bank, earn $5 per day, it simply doesn’t make sense for these people to use bank accounts. If they have to purchase something, they just use cash and their incomes never get rolled up in the financial wheel. Sometimes it has been noted that these people stay very far from the banks or the institutions that will issue them the necessary documents needed to open a bank account.
Digital Currency’s Role in Banking the Unbanked
Digital currency is something that anyone can get hold of and use as they feel like. Digital currency is a monetary asset that can be used to purchase goods and services. This kind of currency can also be used for sending money overseas without having to give the exchange rates. The downside of digital currency is that it needs the internet to run on and need a wallet from where the money will be sent and the one in which it will be received.
Using digital currency is safe, as it is encrypted with cryptography and keeps the users anonymous. This helps literally anyone to open an account and invest with digital currencies. Now, you will say, come on the prices are so high how a person with $5 will buy it? Well, the answer is there are pieces of an entirely digital currency that can be purchased at $5. People using digital currencies do not have to open bank accounts and submit important documents. They will just need to make an account in one of the Bitcoin trading websites or applications and start purchase and dispatch.
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Digital Currencies Will Help People
Many investors have quoted that digital currencies will help many people in need. If digital currencies can be used effectively it can bring the world a lot of good. See, there are many problems with the banks when we send money to foreign countries; the exchange rates are quite high. Suppose you are sending money to your daughter who is staying abroad to complete their educations. The fund that you keep aside is $2000 when you send it there are exchange fees that you have to pay when the money is being taken out, plus there are added fees that get deducted.
This means that when your daughter finally takes the money out, she will be left with $1500. This clearly is not justifiable. The hard-earned money that your daughter needs badly is being deducted in almost every process it moves along. But when you use digital currencies, this is a factor that you will not have to think about. The digital currency world is foreign for the term exchange fee; hence the amount that you plan to send stays intact.
Even if you try to cash out the digital currency to fiat currencies $2000 remains $2000.
Over time digital currencies have helped many in need; few southern countries have started using digital coins so that they can deal with the dropping economic conditions. These people have majorly invested in digital currencies so that they can have assets that they can cash out when they need and save a proportionate amount of savings. But, they have also started to make purchases using digital currencies as that appeared convenient.