It has been an extraordinary year for cryptocurrencies, exceeding the $3 trillion mark in just 2021. Chainalysis research shows that crypto adoption grew by over 2300% between 2020 and 2021, compared with 880% in 2020. The majority of this adoption occurred in Asia’s developing countries, such as Vietnam, India and Pakistan. This proves that crypto is easily available to underdeveloped and emerging nations, where banks fail to provide a foundation.
Crypto has spread to all corners of the globe thanks to its many features, including transparency, privacy, fast, affordable transactions, total ownership and money ownership. TradFi was flipped and crypto is now available to all corners of the globe.
Failure of Banks to Hit Billions
Many challenges have plagued banks for years. A majority of banks offer their services through middlemen who are often charged high fees. This is a serious problem. It can be difficult to buy a large house or car. The process involves many steps, which include notaries, attorneys and other professional who charge a lot.
A second problem is the fact that banks are centralized, meaning they are managed by the government, increasing the chance of theft and devaluation. Moreover, today’s banking infrastructure is such that banking services are inaccessible to around 1.7 billion adults worldwide.
Customers have also found it difficult to deal with the slowness of TradFi service providers (banks included) To add insult to injury, many banks were the victims of identity thefts and scams. The Federal Trade Commission (FTC) estimates that approximately 4.8 Million Identity theft and Fraud claims were filed in 2020 by U.S. citizens. This is a 45 percent increase over the 3.3 million registered in 2019.
Crypto brings financial services to everyone
Although banks are still the dominant force in TradFi banking, it has failed to reach an enormous portion of the population. With the introduction of cryptocurrency, financial services have become more easily accessible and are successfully banking the underbanked and unbanked. Easy-to-setup cryptocurrency wallets have removed the barrier to opening a TradFi bank account. This wallet has allowed users easy access to all global cryptocurrency, loans and additional revenue sources. It also allows for wealth building resources.
The blockchain technology that underpins cryptocurrency has also eliminated the need to involve third parties. This dramatically reduces the amount of time it takes to settle transactions as well as the associated costs. Because it is decentralized, consumers have complete control of their funds. This allows them to devalue and control the value and take out any other institution.
Coinovy is a rising platform that makes it easy to access crypto-based financial services. Coinovy simplifies crypto by making it simple for anyone to trade, buy and sell securely. Coinovy aims to bring together crypto and traditional economies while ensuring transparency and efficiency in digital asset finance transactions.
Coinovy, a decentralized digital finance app, simplifies fintech via crypto to fiat transactions (C2F), while also offering bank-like functions to the unbanked.
Is Cryptobetter than Banks a Viable Alternative
Because banks control the entire global financial infrastructure, today’s economic system has become highly centralized. The banks have a huge influence on the economy of many countries. Although this arrangement has its advantages, it can lead to serious economic downturns if too much power is concentrated within a single organization.
Crypto could help solve the problem, as it relies on algorithmic trust and is therefore a more efficient alternative to current systems. Blockchain and crypto will make finance more transparent, secure, and faster.