CRYPTOCURRENCY

WRITTEN BY : JOANNA ENGLAND

As the use of cash diminishes and digital payments increase , many unbanked people with access to mobile technology have instead opted to explore the offerings provided by cryptocurrency and the DeFi space .

There is limited data on the interest of unbanked individuals in cryptocurrency . However , some reports suggest that digital currencies already play a significant role in financial inclusion for the unbanked , as there ’ s no requirement to have an active bank account and can be accessed through a mobile phone .

The reasons for this are multifold , with experts citing limited financial literacy , lack of proper documentation , high costs of financial services , lack of trust in financial institutions , and limited financial infrastructure in certain areas . Additionally , marginalised populations may face discrimination or exclusion from the formal financial sector .

The DeFi space – alongside its democratised platforms and numerous currency options – has , therefore , begun to provide an alternative finance space for people disenfranchised with , and unable to participate in , traditional banking markets .

A divided economy Speaking about the changing market , Sahar Salama , CEO and Founder of the full-service mobile payment platform TPAY MOBILE , notes that increased digitisation of the economy is creating a divide between the technologically savvy and disenfranchised groups . She says this requires appropriate government policy so that everyone can benefit from the new possibilities of the digital world .

“ As our society becomes increasingly cashless , some advocacy groups have raised concerns about the inclusion of vulnerable groups in the digital economy .

“ While these concerns are warranted and it ’ s true that not enough is being done to include everyone in the digital economy , the solution should be a collaborative one that

86 April 2023