Crypto Altruism Podcast Episode 30 - How DeFi can help the 2 billion people who are unbanked around the world
In this episode, we discuss a term that gets used a lot in the web3 space, and that of course is DeFi, or Decentralized Finance. Specifically, we explore, if, indeed, DeFi can be a solution to the crisis of the unbanked, and bring greater financial inclusion to everyone.
According to the latest report from the World Bank, there are nearly 1.7 billion people around the world that are unbanked. Being unbanked, in essence, means that one does not have access to or use banks or traditional financial services. Individuals who are unbanked typically live in extremely poor and rural regions, lack basic financial and telecommunications infrastructure, and lack necessary identification to open a bank account.
Being unbanked can put individuals and communities at a disadvantage, as it may prevent them from fully engaging with the economy, being able to take out a loan or purchase a house, or being unable to get insurance, among many other challenges.
Cryptocurrency, and more specifically, Decentralized Finance (or DeFi), has been put forward as a potential remedy to this challenge. DeFi, in short, is a catch-all term for decentralized, blockchain-based services that enable basic financial transactions, such as the earning of interest, borrowing of money, storing of cash, and purchasing of insurance. In this episode, I highlight three reasons, among many, that DeFi and crypto are well suited to help overcome the crisis of the Unbanked, and share a few examples of exciting DeFi projects.
Projects Discussed:
Bloinx by BX Smart Labs
Satchel
Kotani Pay
Etherisc
Leaf Global FinTech
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