If you have a bank account, you might not give a second thought to people who don’t. You just take for granted that money will be there when you need it, and that you can access it in different ways.
But did you know that approximately 30% of the world’s population is unbanked? Meaning they have no access to a bank account? And many more than that are underbanked.
The reasons for this vary, but most often people cite a lack of money, proper documentation or affordable options. Other reasons are distance, inconvenience, and lack of trust.
Nearly half of all unbanked adults live in just 7 places: China, India, Indonesia, Pakistan, Nigeria, Mexico and Bandladesh. And the majority of them are women.
In the U.S., the numbers are a little lower, but still, over 20% of American households are underbanked, according to the Federal Reserve.
So, what are these people supposed to do when they have to purchase something online, or send money to friends or family around the world? Well, there are a few options, but Bitcoin ATMs are one of the most popular. These machines allow anyone to buy (or sell) digital currency with cash, and send it wherever they want – almost instantly!
There are three categories of people who don’t use bank accounts at all, or rarely.
These are adults who do not have a bank account at all, so they have no access to financial services. Sometimes a family member, such as a spouse or parent, might have a bank account – but the unbanked individual doesn’t use it. They might not have a job, or otherwise don’t keep enough money to warrant opening an account, or the financial institutions are not convenient or affordable enough. For these people, owning digital currency could be the only way to spend, or maybe even grow, the money they have.
These are people who have just the bare minimum of financial services, such as maybe a prepaid debit card or payday loan, but nothing else. They either don’t have enough money to open more accounts, they find the fees are too high, they don’t have the documentation required, or maybe there aren’t any banks near them. These people mostly rely on cash transactions for their daily purchasing needs; but not everything can be purchased with cash, so that’s where digital currency comes in. Coin Cloud BTMs allow the underbanked to purchase digital currency with that cash.
These are people who choose not to use a bank account because they don’t trust mainstream financial institutions, or they don’t like the lack of privacy opening a bank account entails. For these people, buying, selling and spending digital currency is a way to protect their privacy and manage their finances on their own terms.
Clearly, Bitcoin ATMs (or digital currency kiosks) fill a huge void for people who can’t, won’t or don’t want to use banks for their financial needs. Unlike a bank, all that’s required to open an account at a BTM is a mobile phone number, plus one type of ID if you want to increase transaction limits. That’s it. They’re easy, convenient and available to all, no matter their economic status.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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