How Cryptocurrency Could Help Fight Global Income Inequality
An overview of the many ways cryptocurrency can help address issues associated with income equality around the world.
For example, in 2022, the richest 10% of Americans own almost 70% of the wealth of the United States. This means that 90% of the country retains only 30% of the wealth. South Africa is another example, with the richest 10% appropriating 65% of the wealth.
Many citizens also lack access to general banking and high-level financial services (i.e. services for accredited investors only) that are readily available to more affluent residents. Cryptocurrency can help reduce wealth disparities by providing users with access to a way to earn, store, receive, send, and invest their money. This analysis looks at how cryptocurrency can help close the income inequality gap.
How can crypto solve income equality?Cryptocurrency gives users easier access to financial tools and a more affordable method of transferring money.
Many people in developing countries rely on family members abroad to send money to cover their living expenses. Remittances account for 20-38.5% of the GDP of countries like El Salvador, Haiti and Tonga. United States dollar-pegged stablecoins like USD Coin (USDC) and Tether (USDT) can ensure that recipients receive a larger portion of transferred funds without middlemen suffering a reduction in the form of transfer fees.
SWIFT transfers can be expensive, with some banks charging 3-5%, while others charge a flat fee of $25-$45. Transfers via Western Union cost an average of $25 for online transfers, $2.99 to $29.99 by credit/debit card, and $7.99 when done in-store. On the other hand, stablecoins like USDC can cost between $3 and $5 to send on Ethereum and less than a penny on BNB Smart Chain, Tron has...
An overview of the many ways cryptocurrency can help address issues associated with income equality around the world.
For example, in 2022, the richest 10% of Americans own almost 70% of the wealth of the United States. This means that 90% of the country retains only 30% of the wealth. South Africa is another example, with the richest 10% appropriating 65% of the wealth.
Many citizens also lack access to general banking and high-level financial services (i.e. services for accredited investors only) that are readily available to more affluent residents. Cryptocurrency can help reduce wealth disparities by providing users with access to a way to earn, store, receive, send, and invest their money. This analysis looks at how cryptocurrency can help close the income inequality gap.
How can crypto solve income equality?Cryptocurrency gives users easier access to financial tools and a more affordable method of transferring money.
Many people in developing countries rely on family members abroad to send money to cover their living expenses. Remittances account for 20-38.5% of the GDP of countries like El Salvador, Haiti and Tonga. United States dollar-pegged stablecoins like USD Coin (USDC) and Tether (USDT) can ensure that recipients receive a larger portion of transferred funds without middlemen suffering a reduction in the form of transfer fees.
SWIFT transfers can be expensive, with some banks charging 3-5%, while others charge a flat fee of $25-$45. Transfers via Western Union cost an average of $25 for online transfers, $2.99 to $29.99 by credit/debit card, and $7.99 when done in-store. On the other hand, stablecoins like USDC can cost between $3 and $5 to send on Ethereum and less than a penny on BNB Smart Chain, Tron has...
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