There exist a very unjust process not only in developing countries but also in developed ones, which simply puts people off to having access to standard banking by rejecting their application and right to have a bank account. COVID-19 pandemic was an eye-opener for the world on many fronts, the most obvious ones being the imminent danger to our environment and climate and also the unjust availability of financial services and their availability restricted only to the privileged. The governments of the world did initiate various projects serving those affected in the pandemic but signing up for most of these plans and relief projects require a standard bank account in which the aid money could be transferred.
The data is staggering in depicting the overall unbanked people in Latin American countries, but it was Brazil who made waves into changing this for good. According to a research firm based in Sao Paulo by the name of Instituto Locomotiva, every 6th Brazilian is unbanked and doesn’t have access to standard financial services. This unjust availability of financial opportunities affects men but, more appropriately, women in Brazil, according to Taynaah Reis, the CEO of neobank Moeda Seeds bank.
Adoption of Blockchain Technology
This is a blockchain-based platform serving the underprivileged in Brazil and allowing them to have access to standard banking services despite the fact that the state doesn’t even consider them or bring them in that specific outline to be considered as a potential candidate for signing up with these services. This institution is not only helping men and women of Brazil but office workers, farmers, and many other people who are overseen by the system and were not even considered to be the potential candidates to avail the standard financial services, which are their very basic right.
With the emergence of blockchain technology and the promise that it brings to the table, Reis believes that the need for centralized financial systems might just begin to slip away as decentralization takes control, but that might not happen anytime soon; still, it is a possibility because everyone gets served under the hood of decentralization whereas the centralized financial systems offer nothing more than prejudice and are biased.