Traditional Banks Not Optimized to Serve the Unbanked – Interview Bitcoin News

Traditional financial institutions have tried to close the gap in financial inclusion for years by offering services to unbanked people. For many reasons these financial institutions cannot offer their services or products to all who need them.

Regulative Hurdles

Although there are many reasons banks may not be able to open new branches, it is their inability to service this vast majority of the population that has resulted in the rise of fintech companies. Eversend and other fintech startups aren’t able to rely on traditional banks for deciding whether to open branches.

For individuals like Stone Atwine, a veteran banker who has been named in Forbes’ 30 Under 30 List for Europe, and Technology, the failures of large financial institutions have created opportunities. Atwine shared with Bitcoin.com News his views on stablecoins and crypto.

Below are Atwine’s responses to questions sent to him via email.

Bitcoin.com News: You have been employed by several traditional financial institutions in various capacities. Can you speak out about the efforts they make to offer financial services to those who are not banked? Is this something you can see happening?

Stone Atwine, SAPeople with small incomes aren’t served well by traditional banks. They are unable to reach the unbanked because of their inefficient efficiency and branch network. Traditional banks cannot make any money if they don’t have enough customers.

BCN: Do you think fintech startups are doing better at bringing financial products to the exclusion?

SA: Yes. Fintech startups that promise to serve the marginalized at a low cost can be a great option. However, not everyone at the top of the pyramid. Eversend, a startup which focuses on helping customers increase their revenues, is one example. This is extremely attractive.

BCN: After leaving banks you have started a digital only banking option for Africa. Tell our readers more about the digital-only banking option.

SA:Eversend, the platform that offers all-in-one cross-border payments via mobile, virtual and stock trading, cryptocurrency, asset-backed credit and P2P, is a one-stop payment solution. It focuses on Africa. Eversend has also begun to build crypto-fiat and API-based payments platforms, which include collections, payouts and currency exchange.

BCN: What challenges are facing fintech startups like yours?

SA:Compliance with regulations is the biggest challenge. There are many regulatory systems in Africa, so there is a variety of laws and regulations.

BCN: Which use case do you believe is best for blockchain technology in Africa?

SA:Although there are many excellent use cases for stablecoins, the one that I find most compelling is web3 or NFTs. It solves a huge problem with cross-border payment of business using stablecoins.

BCN: Recently, the Central African Republic became the second country to legalize bitcoin after El Salvador. This decision caused controversy, which was not surprising. Others argued it was impossible to accept bitcoin in a country that has limited telecommunications infrastructure such as the CAR. Some have suggested that cryptocurrencies such as bitcoin could be used to act as an alternate reserve currency. These sentiments and views are what you think.

SA:The CAR may make a good move to increase wealth and human capital. Builders love to build for favorable regulatory environments. It won’t be surprising to see a few companies moving in the build around bitcoin and the lightning network.

The criticism about limited internet and electricity access is valid. Bitcoin, however, would not solve all problems. It should not hinder the ability of any country, including Canada, to be a leader in this market. These are all advantages.

BCN: Some have suggested that stablecoins are more sensible than volatile bitcoin. The recent collapse of the UST stablecoin seems to have remade this argument. Which is your opinion?

SA: Stablecoins need to be auditable and fully backed by fiat currency so that we don’t experience value loss when there’s a bank run. Today, I don’t support an algorithmic stability coin. UST is one example of what might happen.

BCN: Is central bank digital currency the right answer? Since cryptocurrencies and stablecoins seem to all face challenges in maintaining stability, are they not also good options for central banks?

SA:Digital currencies from central banks are a great idea for governments and central banks that want total control of their citizens. They aren’t recommended for privacy. The government won’t know about a transaction if I give you a fiat currency note. Every movement of value in CBDCs is recorded. Although most people have nothing to hide it is a big invasion of privacy.

Stablecoins that are fully backed make great sense.

Let us know your opinions about the interview. Comment below to let us know your thoughts.

Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. His writings have covered the economic problems of several African countries and how digital currency can offer an escape route.