Homelessness is a significant issue all around the world. As per the research carried out by Yale, it is estimated that around 2% of the world’s population, around 150 million people, are homeless. Homelessness not only offers security and health concerns but also isolates the person from society, especially in terms of participation in the global economy.
For a homeless person, to get out of this state in the present market is very difficult. Even the present economic structure is of no assistance to the homeless. Having no permanent address, deprive them of services of banks and employment.
With a new monetary system coming into place, the effect that cryptocurrency will have on homeless people must be analyzed.
Banking the Bankless
The most important feature of cryptocurrencies is that they are borderless and of inclusive nature. Any person with a computing device and an internet connection can be part of the crypto economy. The only thing required to create an account is to have a phone number, email id, and some authentic identification.
Homeless people, especially in big towns and metropolitan cities, have mobile phones and access to public Wi-Fi, allowing them to connect to the internet. Also transferring money through cryptocurrencies can be done directly without any requirement of intermediaries.
Organizations such as Fintech have provided financial services to the unbanked population of Brazil, while HSBC has offered to create bank accounts of people who are homeless in the UK.
In cryptocurrencies, the decentralized world is open for all, allowing everyone to join the crypto network. Its peer-to-peer network ensures that no one is left behind.
Requirement for a Structure
Cryptocurrency is designed to provide financial services to all people. But, in underdeveloped countries, homeless people are unable to access basic technologies like mobile phones and the internet.
For everyone, to connect to the crypto network, it is essential that, first everyone should have access to the technology necessary to communicate with the network. Second, everyone should have adequate knowledge about technology, and how to interact with the digital world. Cell phones that are destroyed every year should be refurbished and made available to the homeless.
Contactless donation terminals, such as those used in London, are another option that can be used. This concept allows commuters to donate to those in need by using their bank cards instead of cash. When these technologies are combined with blockchain technology and cryptocurrencies, they can be far more effective.
Where in the traditional banking system, homeless people are being included slowly; cryptocurrencies will include them from the beginning.
Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency.
Photo by – geralt on pixabay