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Cryptocurrency and the unbanked

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Re: Cryptocurrency and the unbanked

#11

Post by _ink_ »

zinekeller wrote: post #2

Eh, probably, but so can mobile banking solutions[1] that are popular in Africa. Unlike in, for example, Europe where mobile payments requires a (relatively fancy) phone, M-Pesa works even on basic phones, which you can't say about cryptocurrencies in general. This is not to dismiss them, of course, but "conventional" currency already has a solution for this, so unless you're advocating for decentralisation (which is…

The Critisism section of that Wikipedia article paints a rather grim picture of M-Pesa in Kenya. To me it looks like the people could benefit from a decentralized finance system that is run by enthusiasts rather than by turbo capitalists.

Re: Cryptocurrency and the unbanked

#12

Post by beshrkayali »

> Crypto doesn't care who you are and where you live. Anyone can start with crypto. The only thing you need is a mobile phone and an internet connection that doesn't even have to be especially good. Most people today have both. Even though centralized exchanges such as Binance or Coinbase require you to provide identification documents, crypto wallets require no such thing. Crypto is a solution for anyone who needs to receive or send money anonymously.

I think it’s more accurate to say: Crypto is a solution for anyone who needs to receive or send money “privately” (rather than) “anonymously”. The idea that you don’t need documents or to provide additional self identifying information (like name and address) doesn’t necessarily mean anonymity, or (imo) should anonymity be a top priority even (not that that’s not important), but being able to spend and transfer money to places where tradition banking doesn’t operate or without being charged extra is.

Whatever mess a system’s/government’s economical plan might lead to, people’s money won’t be tied to it and wouldn’t be affected.

Also, you don’t really need a smart phone, any old laptop that can run Linux would do.(which are usually cheaper, more available and function better than a phone)

Re: Cryptocurrency and the unbanked

#13

Post by chii »

EdwardDiego wrote: post #9
AussieWog93 wrote: post #3

Earlier quoted context omitted.

I thought the same thing when reading the article. Crypto for this particular problem seems like the proverbial sledgehammer to crack open the walnut.

Cryptocurrency really feels like a solution desperately in need of a problem.

Crypto is a solution to the "problem" of centrally controlled money.

I'm just not 100% sure that it is a real problem, but those who buy it either believe it to be, or at least, want to hedge for it.

Re: Cryptocurrency and the unbanked

#14

Post by hammyhavoc »

laurentdemarez wrote: post #8
pudo wrote: post #4

Towards the end, the author claims that the benefit of crypto will be to teach people financial literacy. Not only is that a little bit like teaching people responsible drinking by bringing them to the Oktoberfest, I'm also not sure all the people who do not have bank accounts are really going to use their late-model iPads to watch CryptoBroTube to learn about stablecoins and NFTs... Nominating this post for the "han…

I don't think this is what the author meant. I think the key here is that it's easier for people to obtain financial literacy because crypto is more accessible than the current financial system.

Can you explain how it is more accessible? Grandma isn't doing crypto.

Re: Cryptocurrency and the unbanked

#15

Post by jsemrau »

Not yet. The on and off-ramps are still way too complicated. Getting an account with one of the established banks (a.k.a exchanges) is painful. AML/KYC takes weeks, the user interface is a mess, every turn costs you "fees", trading is dominated by whales when they move their money around to pump some shit-err... alt-coin, and finally getting back into fiat so you can actually use all of the "in-game" currency is slow and expensive again. While I work on a crypto solution through my startup, the current state of affairs has still a lot of room to grow.

Re: Cryptocurrency and the unbanked

#17

Post by numair »

sub7 wrote: post #5

Crypto is for the ultra banked. To make profit via speculation. And insider trading. Gross conflicts everywhere. Hope it all burns down.

> Crypto is for the ultra banked.

Sometimes the bottom of the comments stack on HN has the most profound comment in the entire conversation. I think this is a good example. By the way, congrats sub7, you invented the phrase “ultra banked.” I hope the investment banks credit you when it lands in an analyst report.

Re: Cryptocurrency and the unbanked

#18

Post by zinekeller »

_ink_ wrote: post #11
zinekeller wrote: post #2

Eh, probably, but so can mobile banking solutions[1] that are popular in Africa. Unlike in, for example, Europe where mobile payments requires a (relatively fancy) phone, M-Pesa works even on basic phones, which you can't say about cryptocurrencies in general. This is not to dismiss them, of course, but "conventional" currency already has a solution for this, so unless you're advocating for decentralisation (which is…

The Critisism section of that Wikipedia article paints a rather grim picture of M-Pesa in Kenya. To me it looks like the people could benefit from a decentralized finance system that is run by enthusiasts rather than by turbo capitalists.

I'm not saying that M-Pesa is perfect but

1) I mentioned M-Pesa because it is the largest one in Africa. There are also smaller players there.

2) While there are problems that is specific to M-Pesa or even conventional currency, looking at the landscape of cryptocurrencies some problems, which in my opinion is inherent in how do you define value, are problems that even cryptocurrency has fallen trap into.

Re: Cryptocurrency and the unbanked

#19

Post by atc »

sub7 wrote: post #5

Crypto is for the ultra banked. To make profit via speculation. And insider trading. Gross conflicts everywhere. Hope it all burns down.

Please back up these sensationalist claims with some evidence otherwise I'll apply "That which can be asserted without evidence, can be dismissed without evidence."

Re: Cryptocurrency and the unbanked

#20

Post by phone8675309 »

chii wrote: post #13
EdwardDiego wrote: post #9

Earlier quoted context omitted.

Cryptocurrency really feels like a solution desperately in need of a problem.

Crypto is a solution to the "problem" of centrally controlled money. I'm just not 100% sure that it is a real problem, but those who buy it either believe it to be, or at least, want to hedge for it.

It (centrally controlled money) is a problem if you want to fleece people for their retirement money in tech support scams or ransomware and avoid having your bank account being seized when the authorities catch up with you.
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