What Does Unbanked Mean?
The term “Unbanked” refers to individuals who are unable to access basic banking products and services. This group primarily consists of marginalized individuals who are rejected by traditional financial institutions for various reasons. Additionally, the unbanked category includes individuals who have made a conscious decision not to utilize banks or other traditional financial services.
In many instances, the unbanked population is made up of individuals who cannot afford the costs associated with opening a bank account or do not meet the necessary requirements. Despite government efforts to develop new financial products aimed at reaching the unbanked, such as microfinancing, many banks still deny low-income customers due to limited resources.
The crypto ecosystem shares a common goal of promoting financial inclusion through the use of digital assets, smart contracts, and other forms of blockchain technology. Bitcoin and DeFi projects, in particular, show promise as solutions for the unbanked, as they offer innovative applications that replicate traditional financial products and services, making them accessible to all individuals.
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