How Crypto Exchanges Are Tackling Poverty

Ongoing technological advancement in digital currencies is a phenomenon that can help developing countries both politically and economically. Cryptocurrencies can solve problems that are unique to these countries by providing access to a bank account, easy transfer of money across borders, and fractionalized payments.

Improving the accessibility of financial services can help improve developing economies by providing greater transparency in transactions and reducing corruption at all levels, and including previously unbanked persons into the financial system stimulates economic growth and enables more accurate forecasting, risk management, and analysis.

Cryptocurrency allows money to be sent from someone on any corner of the world to anyone else, without the need for a bank account or the often-draconian Know Your Customer regulations that come with them and are sometimes deliberately designed to keep low-earning customers out.

All that a person needs in order to transact in cryptocurrency is a mobile service signal and a basic handset. With this everyday item, users can gain access to a wallet, a private key for that wallet, and a world of possibilities that they had never known before.

Aiding and partnering up with organizations that support developing countries is a sure-fire way to help raise awareness of cryptocurrencies on a global scale. Only through engaging with cryptos and interacting with wallets and exchanges will people become more acquainted with the technology as well as more open to adopting it.

Misconceptions

There are many misconceptions about exchanges and trading, one of which is that crypto is limited to trading and anonymous transactions without any care or consideration for its potential contribution to societal issues such as human trafficking and terrorism. This is coupled with the perception that traders are greedy and only interested in benefiting themselves and their profits from trading activity by relying on hedging and speculation to reap rewards.

For this perception to change, the cryptocurrency exchange industry needs to be encouraged to look beyond profit, opportunistic trading and hedging by giving back to society and underprivileged communities through publicly beneficial initiatives and partnerships.

Charities are always open to new ideas and fundraising opportunities, and establishing partnerships with them can often help organizations expand their fundraising base and diversify their scope of expertise while giving them visibility and access to new markets. This approach helps to spread the benefits of cryptocurrency and promote long-term adoption.

Philanthropy

Cryptocurrency businesses providing services to charities has become a growing global trend. Earlier this year, Altcoin Fantasy partnered with popular crypto influencer Datadash to promote a Christmas trading contest for four charity organizations, while the Binance Charity foundation has so far raised more than 449 BTC for a variety of charitable causes, ranging from tackling poverty to providing safe shelter for refugees.

Oxfam also recently launched the second phase of its Vanuatu disaster relief program, which uses the MakerDAO stablecoin DAI to distribute financial aid following natural disasters. Additionally, blockchain technology is also being used to tackle the issue of ocean plastics. Dutch company Waste2Wear uses blockchain to track the provenance of ocean plastics, so environmentally-minded consumers can be certain they are really wearing items made from recycled plastics recovered from oceans.

Access to traditional banking systems is one of the biggest barriers that continue to widen the gap between rich and poor. Access to sound financial support is a key factor in alleviating poverty. Even now, an alarmingly high percentage of the world’s population remains unbanked or underbanked due to various political and socioeconomic factors. However, exchanges and cryptocurrencies can help to solve these problems.

Blockchain has already made huge waves among wealthy investors, but it also has the potential to benefit countless people worldwide who are living in poverty and are in dire need of secure, reliable and affordable financial services. Blockchain removes many of the obstacles that have traditionally hampered efforts to address poverty, and it does so regardless of political or geographical borders, which is perhaps the technology’s most powerful source of potential.

Goodwill

When crypto exchanges help nonprofit organizations, both parties can mutually benefit from the increased global interest in trading and cryptocurrencies — an interest that will only grow in the next decade.

As philanthropic initiatives in the crypto space have been gaining traction, exchanges have a unique opportunity to show the world that they are not just profit-oriented but rather ready to include the less fortunate in developing countries into the global economy, boost their standard of living, and help build up a culture of benefiting those in need.

Other crypto exchanges taking on initiatives to support NGOs to spread this message further would be an exciting development to witness. It is the season of goodwill, after all.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.