Why is Cryptoeconomics a Powerful Mechanism for Inclusion?
 

Why is Cryptoeconomics a Powerful Mechanism for Inclusion?


The accessibility and freedom that digital currencies provide are the main points of inclusion for people who do not have access to the banking system.

More than 3.5 million Ukrainians have already left the country to flee the war. Many of them were only able to save part of their wealth because they had investments in the crypto economy.

Immunity to international sanctions, decentralized architecture, and anonymity of transactions have made cryptocurrencies important tools during humanitarian crises. In this way, it was possible for Ukrainians to use digital currencies to keep part of their heritage safe and survive in the midst of chaos.

Ukraine's own government has already received around $54 million in bitcoin donations to help defend against the Russian attack. In a war, agility and stealth when moving money count a lot in the fight for survival.

The first thing that comes to mind for many people when it comes to crypto economics is investments in virtual currencies. Cryptocurrencies are mostly seen as an investment, but what most ignore is that they are an important mechanism for financial inclusion and a fundamental tool to assist the population in wars and humanitarian crises. “Crypto-assets were created precisely to be solutions and not investments, as many imagine,” says cryptoeconomics specialist Lucas Cardeal.

He explains that the accessibility and freedom that digital currencies provide are the main points of inclusion for people who do not have access to the banking system. “Anyone with a cell phone can access the cryptocurrency system. It is an environment that allows you to carry out fast transactions from anywhere in the world in a safe and reliable way”, he says.

It was this security that saved many people after the Taliban seized power in Afghanistan. Groups persecuted by the extremist regime, such as homosexuals and women, managed to leave the country using cryptocurrencies. “In totalitarian regimes, crypto assets are the way out to get around blocking access to bank accounts and even leave the country taking their assets with them,” adds Cardeal.

Benefits of the crypto economy

One of the most obvious advantages of using the crypto economy is the disconnection with governments. This allows the birth of a kind of deregulated alternative economy. In addition, cryptocurrencies can be sent to any user anywhere in the world and instantly, without bureaucratic obstacles. To make matters worse, the commissions of traditional banks disappear.

Governments could try to regulate the crypto economy to benefit from their transactions, but then a new currency would be created and they would have to regulate it again. A large number of different cryptocurrencies already exist and will continue to be created based on user needs.

Created on 26th Apr 2022

Comments