Cryptocurrency and the unbanked • Hacker News Board

Re: Cryptocurrency and the unbanked

#111

Post by rose8 » Mon, Oct 04, 2021, 2:37 PM UTC

beshrkayali wrote: post #12

> 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 t…

thanks for the comment. Makes sense to use „privately“ instead of „anonymously“.

Re: Cryptocurrency and the unbanked

#112

Post by lowkey » Tue, Oct 05, 2021, 9:35 AM UTC

acdha wrote: post #93

lowkey wrote: post #55

Earlier quoted context omitted.

See Bitcoin’s BIP-39. With crypto, if I can remember 12 words I can freely transport my life savings anywhere in the world and no government can seize my wealth without torturing me into giving up my passphrase. Can you share a similar strategy for refugees using fiat, gold, real estate, stocks or bonds?

This is only true to the extent that you can exchange those tokens for the things you need. Just as with all other asset classes, once a government makes an effort those options dry up — and the public nature makes it worse because the system is designed to help the government auditors trace your transactions and punish everyone who’s helped you launder funds, which will be priced into the costs which are already hig…

Think of Bitcoin as your personal reserve currency rather than a directly transactional currency at least today. You use Bitcoin as your store of wealth to transfer your life savings safely across borders. Then once safely in a refugee camp or other safer place you could use the local black market to exchange some Bitcoin for the local currency so you can spend it.

Re: Cryptocurrency and the unbanked

#113

Post by acdha » Tue, Oct 05, 2021, 11:04 AM UTC

lowkey wrote: post #112

acdha wrote: post #93

Earlier quoted context omitted.

This is only true to the extent that you can exchange those tokens for the things you need. Just as with all other asset classes, once a government makes an effort those options dry up — and the public nature makes it worse because the system is designed to help the government auditors trace your transactions and punish everyone who’s helped you launder funds, which will be priced into the costs which are already hig…

Think of Bitcoin as your personal reserve currency rather than a directly transactional currency at least today. You use Bitcoin as your store of wealth to transfer your life savings safely across borders. Then once safely in a refugee camp or other safer place you could use the local black market to exchange some Bitcoin for the local currency so you can spend it.

Yes, I’m familiar with the pivot after failing at its stated goals. That has the same problem: you need to conduct illegal transactions on both ends which will be expensive even if it doesn’t lead to getting caught, and the volatility is potentially ruinous if you can’t wait for favorable exchange rates with a stable currency.

Re: Cryptocurrency and the unbanked

#114

Post by panarky » Sat, Oct 09, 2021, 6:09 AM UTC

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 story is bigger than just in-person payments, it's also about remote payments, cross-border transfers, and savings.

Sure "conventional" paper currency is already a good solution for in-person payments, but it doesn't work for remote payments, international transfers or savings.

Cashapp has compelling answers for remote domestic payments and savings in the US, and TransferWise is great for international transfers among wealthy nations.

These three are the use cases we're seeing blossom in El Salvador where Cashapp and TransferWise aren't available.

I suspect this is an Innovator's Dilemma situation, where crytpocurrency solutions are honed and adapted in emerging markets, then eventually compete with established players in rich nations.