Emerging markets will lead Bitcoin to global adoption. The world is finally waking up to this fact but financial inclusion remains illusive in parts of the world. Over 1.7 billion adults are unbanked/underbanked and do not have access to a traditional banking account. In India, that number is 190 million. Bitcoin has the power to change this by connecting the unbanked and underbanked to the larger global financial ecosystem. As more countries begin to recognise the true power of Bitcoin, it’s important that stakeholders are committed to Bitcoin education and an inclusive market. Without it, we will never close the financial inclusion gap and give people around the world access to financial freedom.
Peer-to-peer platforms like Paxful enable financial inclusion by giving access to nearly 400 different payment methods to buy, sell, and trade Bitcoin and other digital currencies. This allows people to use Bitcoin for use cases like remittance, e-commerce, and wealth preservation—areas that need desperate improvement to serve the 100%.
The core of the Bitcoin whitepaper spoke about Bitcoin as a peer-to-peer financial system for the masses—an electronic cash system for the people, not for the wealthy. For Bitcoin to impact the masses, then it’s going to take a peer-to-peer system to get us there.
Bitcoin for economic mobility
Bitcoin has the power to open doors and increase both economic opportunity and mobility for billions of people. But this will never be possible without financial education. Financial inclusion begins and ends with education. Bitcoin is shaping the future of finance and we must educate, train, and inform people on how Bitcoin and peer-to-peer finance can reduce barriers and break the cycle of financial inequality. Take El Salvador for example, a country leading Bitcoin adoption. This year, Paxful launched ‘La Casa del Bitcoin’, a Bitcoin education and training center providing opportunities to access greater financial resources for wealth generation. This is how we’ll make it happen. Being in every corner of emerging markets and educating people around Bitcoin as a peer-to-peer financial system for the masses.
We can also look to one of our users in India, who started his business with just $3. After learning how to sell on Paxful for part-time earnings, they’re one of the largest traders to date on Paxful, accumulating over $60m in trade volume. While minting millionaires is not something I am devotely interested in, this use case highlights the power of education.
Beyond speculation
The biggest hurdle around Bitcoin education is showing how it can be used beyond speculation. We need to focus less on extreme wealth generation and focus our efforts on Bitcoin for the 100%. We do this by showing how the asset can be used as a means of exchange—through remittance, payments, e-commerce, wealth preservation, and social good.
As an example, sending a cross-border payment is not always easy and can be difficult, especially for people living in countries where there is low access to financial services or the government places restrictions on its citizens sending and receiving money. Bitcoin can provide a better alternative because of its cost, speed, and access to banking. This has a massive potential impact for families being charged absorbent fees to send money abroad and highlights just one way Bitcoin can be used to complement the gaps in the current financial system.
On the road to global Bitcoin adoption
Today, India is Paxful’s second largest country based on trade volume. Emerging markets like India are creating the future of money as we speak and are teaching us about the true use cases of Bitcoin. Financial education is the key component to the economic success of any country and in places like Latin America and Africa, we’re seeing it spur entrepreneurship, technological advancement, and economic growth.
We must continue to educate regulators, government officials, and businesses about the potential of Bitcoin to reduce barriers to wealth and financial access for the people of India. Let’s not make the mistake of mirroring it after legacy financial systems. It’s time to build something new and use education to drive financial freedom.