Banking the Unbanked with Cryptocurrency: Risks and Rewards (2024)

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Monday, 06/03/2023 | 17:01 GMT by FM Contributors

  • Financial inclusion or predatory inclusion?

Banking the Unbanked with Cryptocurrency: Risks and Rewards (2)

According tothe World Bank, over 1.7 billion adults around the world do not have access totraditional banking services, effectively leaving them out of the financialsystem.

However,cryptocurrency and blockchain technology have the potential to solve thisproblem by allowing the unbanked to access financial services without the needfor a traditional banking infrastructure.

In thisarticle, we'll look at the risks and benefits of using cryptocurrency to bankthe unbanked. Cryptocurrency is a type of digital or virtual currency thatemploys cryptography to secure and verify transactions as well as to controlthe creation of new units.

Cryptocurrencyoperates independently of central banks and is based on blockchain technology,which is a decentralized ledger that securely and transparently records alltransactions.

For theunbanked, cryptocurrency has several advantages, including:

Accessibility

As long asthere is an internet connection, cryptocurrency can be accessed from anywherein the world. As a result, it is an ideal solution for people who live inremote areas or who do not have access to traditional banking services.

LowerTransaction Costs

Because thereare no intermediaries involved in the transaction process, cryptocurrencytransactions are typically less expensive than traditional bankingtransactions.

Security

Cryptocurrencytransactions are encrypted and thus difficult to hack or manipulate. This addsan extra layer of security for users who may be vulnerable to fraud or theft.

FinancialIndependence

Cryptocurrencygives users complete control over their funds, eliminating the need forintermediaries or central authorities. This provides users with more financialfreedom and control over their money.

CryptocurrencyRisks for the Unbanked

Whilecryptocurrency has several advantages for the unbanked, there are some risks toconsider, including:

  • Volatility:Cryptocurrency prices can be extremely volatile, posing a risk to usersunfamiliar with the market. Users who are not cautious with their investmentsmay suffer significant losses as a result.
  • Cryptocurrencyis vulnerable to security threats, such as hacking and theft. Users must takethe necessary precautions to secure their wallets and ensure the safety oftheir funds.
  • Lackof Regulation: Because cryptocurrency is a new technology, there is littleregulation in place to govern the sector. This can make identifying the risks andbenefits of various cryptocurrencies difficult for users.
  • AdoptionObstacles: Cryptocurrency adoption remains low, particularly in developingcountries. Users may find it difficult to locate merchants and other users whoaccept cryptocurrency as a result of this.

TheBenefits of Using Cryptocurrency to Bank the Unbanked

For banking theunbanked, cryptocurrency offers several incentives, including:

  • FinancialInclusion: Cryptocurrency has the potential to provide financial services topeople who are currently unable to access them. This can aid in the reductionof poverty and the promotion of economic growth in developing countries.
  • LowerCosts: Cryptocurrency transactions are typically less expensive thantraditional banking transactions, which can assist in lowering the cost offinancial services for the unbanked.
  • Decentralization:Because cryptocurrency operates on a decentralized network, users have morecontrol over their funds and can avoid traditional intermediaries. Thisprovides users with more financial freedom and control over their money.
  • Cryptocurrencyis a new and innovative technology that has the potential to completelytransform the financial industry. We can drive innovation and promote new formsof financial inclusion by banking the unbanked with cryptocurrency.

Risksof Using Cryptocurrency to Bank the Unbanked

While there areseveral advantages to using cryptocurrency to bank the unbanked, there are somerisks to consider, including:

Cryptocurrencyis vulnerable to security threats, such as hacking and theft. Users must takethe necessary precautions to secure their wallets and ensure the safety oftheir funds.

  • Volatility:Cryptocurrency prices can be extremely volatile, posing a risk to usersunfamiliar with the market. Users who are not cautious with their investmentsmay suffer significant losses as a result.
  • AdoptionObstacles: Cryptocurrency adoption remains low, particularly in developingcountries. This makes it difficult for users to locate merchants and otherusers who accept cryptocurrency.
  • Lackof Regulation: Because cryptocurrency is a new technology, there is littleregulation in place to govern the sector. This can make assessing the risks andbenefits of various cryptocurrencies difficult for users.

Canbanking the unbanked with cryptocurrency lead to predatory inclusion?

Cryptocurrency, whilean incredible decentralized asset that it is, still has a massive limitationto overcome in what concerns financial inclusion: the potential forexacerbation of inequality in financial services for the historically excluded.

The concept ofpredatory inclusion has been the subject of many studies before, and thephenomenon can be generally referred to as marginalized communities having accessto goods, services, and even to opportunities which they were historicallyproven to be excluded from. However, said access has certain underlyingconditions which are bound to undermine their long-term benefits. These caveats often come at a high cost and high risk, with little consumer protection, and happenin everyday finance (payday loans, subprime mortgages, and so forth).

So, while paydayloans were once seen as a clever way of providing individuals with access tocredit (the democratization of credit), and subprime mortgages were seen as afast-track to homeownership, their risks were incredibly high and following the2008 financial crisis, the results were clear: the wealth of many struggling orimpoverished communities had been totally and utterly decimated.

With that in mind, when cryptoproponents adamantly defend that crypto products are 100% ready to fill thegaps that our traditional financial system and institutions have, it is important to understand if those very same gaps are exclusionary practices orstrictly risk management measures.

Before committing to having crypto attempt to tackle the unbanked issue, it would be unwise for policymakersnot to draw parallels between the intended benefits crypto might have and theircurrent alternatives.

Conclusion

Cryptocurrencyhas the potential to bring financial services to people who are currentlyunable to access them. We can promote financial inclusion, reduce poverty, anddrive economic growth by using cryptocurrency to bank the unbanked.

However, thereare risks to using cryptocurrencies, such as security risks, volatility, adoptiondifficulties, and a lack of regulation. Before investing in cryptocurrency,users should carefully consider these risks and take appropriate precautions toprotect their funds.

As technologyand regulations advance, we can anticipate more widespread adoption ofcryptocurrency as a tool for banking the unbanked.

According tothe World Bank, over 1.7 billion adults around the world do not have access totraditional banking services, effectively leaving them out of the financialsystem.

However,cryptocurrency and blockchain technology have the potential to solve thisproblem by allowing the unbanked to access financial services without the needfor a traditional banking infrastructure.

In thisarticle, we'll look at the risks and benefits of using cryptocurrency to bankthe unbanked. Cryptocurrency is a type of digital or virtual currency thatemploys cryptography to secure and verify transactions as well as to controlthe creation of new units.

Cryptocurrencyoperates independently of central banks and is based on blockchain technology,which is a decentralized ledger that securely and transparently records alltransactions.

For theunbanked, cryptocurrency has several advantages, including:

Accessibility

As long asthere is an internet connection, cryptocurrency can be accessed from anywherein the world. As a result, it is an ideal solution for people who live inremote areas or who do not have access to traditional banking services.

LowerTransaction Costs

Because thereare no intermediaries involved in the transaction process, cryptocurrencytransactions are typically less expensive than traditional bankingtransactions.

Security

Cryptocurrencytransactions are encrypted and thus difficult to hack or manipulate. This addsan extra layer of security for users who may be vulnerable to fraud or theft.

FinancialIndependence

Cryptocurrencygives users complete control over their funds, eliminating the need forintermediaries or central authorities. This provides users with more financialfreedom and control over their money.

CryptocurrencyRisks for the Unbanked

Whilecryptocurrency has several advantages for the unbanked, there are some risks toconsider, including:

  • Volatility:Cryptocurrency prices can be extremely volatile, posing a risk to usersunfamiliar with the market. Users who are not cautious with their investmentsmay suffer significant losses as a result.
  • Cryptocurrencyis vulnerable to security threats, such as hacking and theft. Users must takethe necessary precautions to secure their wallets and ensure the safety oftheir funds.
  • Lackof Regulation: Because cryptocurrency is a new technology, there is littleregulation in place to govern the sector. This can make identifying the risks andbenefits of various cryptocurrencies difficult for users.
  • AdoptionObstacles: Cryptocurrency adoption remains low, particularly in developingcountries. Users may find it difficult to locate merchants and other users whoaccept cryptocurrency as a result of this.

TheBenefits of Using Cryptocurrency to Bank the Unbanked

For banking theunbanked, cryptocurrency offers several incentives, including:

  • FinancialInclusion: Cryptocurrency has the potential to provide financial services topeople who are currently unable to access them. This can aid in the reductionof poverty and the promotion of economic growth in developing countries.
  • LowerCosts: Cryptocurrency transactions are typically less expensive thantraditional banking transactions, which can assist in lowering the cost offinancial services for the unbanked.
  • Decentralization:Because cryptocurrency operates on a decentralized network, users have morecontrol over their funds and can avoid traditional intermediaries. Thisprovides users with more financial freedom and control over their money.
  • Cryptocurrencyis a new and innovative technology that has the potential to completelytransform the financial industry. We can drive innovation and promote new formsof financial inclusion by banking the unbanked with cryptocurrency.

Risksof Using Cryptocurrency to Bank the Unbanked

While there areseveral advantages to using cryptocurrency to bank the unbanked, there are somerisks to consider, including:

Cryptocurrencyis vulnerable to security threats, such as hacking and theft. Users must takethe necessary precautions to secure their wallets and ensure the safety oftheir funds.

  • Volatility:Cryptocurrency prices can be extremely volatile, posing a risk to usersunfamiliar with the market. Users who are not cautious with their investmentsmay suffer significant losses as a result.
  • AdoptionObstacles: Cryptocurrency adoption remains low, particularly in developingcountries. This makes it difficult for users to locate merchants and otherusers who accept cryptocurrency.
  • Lackof Regulation: Because cryptocurrency is a new technology, there is littleregulation in place to govern the sector. This can make assessing the risks andbenefits of various cryptocurrencies difficult for users.

Canbanking the unbanked with cryptocurrency lead to predatory inclusion?

Cryptocurrency, whilean incredible decentralized asset that it is, still has a massive limitationto overcome in what concerns financial inclusion: the potential forexacerbation of inequality in financial services for the historically excluded.

The concept ofpredatory inclusion has been the subject of many studies before, and thephenomenon can be generally referred to as marginalized communities having accessto goods, services, and even to opportunities which they were historicallyproven to be excluded from. However, said access has certain underlyingconditions which are bound to undermine their long-term benefits. These caveats often come at a high cost and high risk, with little consumer protection, and happenin everyday finance (payday loans, subprime mortgages, and so forth).

So, while paydayloans were once seen as a clever way of providing individuals with access tocredit (the democratization of credit), and subprime mortgages were seen as afast-track to homeownership, their risks were incredibly high and following the2008 financial crisis, the results were clear: the wealth of many struggling orimpoverished communities had been totally and utterly decimated.

With that in mind, when cryptoproponents adamantly defend that crypto products are 100% ready to fill thegaps that our traditional financial system and institutions have, it is important to understand if those very same gaps are exclusionary practices orstrictly risk management measures.

Before committing to having crypto attempt to tackle the unbanked issue, it would be unwise for policymakersnot to draw parallels between the intended benefits crypto might have and theircurrent alternatives.

Conclusion

Cryptocurrencyhas the potential to bring financial services to people who are currentlyunable to access them. We can promote financial inclusion, reduce poverty, anddrive economic growth by using cryptocurrency to bank the unbanked.

However, thereare risks to using cryptocurrencies, such as security risks, volatility, adoptiondifficulties, and a lack of regulation. Before investing in cryptocurrency,users should carefully consider these risks and take appropriate precautions toprotect their funds.

As technologyand regulations advance, we can anticipate more widespread adoption ofcryptocurrency as a tool for banking the unbanked.

Topics

cryptocurency Banking unbanked

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    Executive Interviews with Joe Li & Simon Naish | ATFX | FMPS:24

    In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In this Finance Magnates Executive Interview, Joe Li, Chairman at ATFX and Simon Naish, Country Head of Australia at ATFX Connect, discuss ATFX’s strategic growth in the APAC region, particularly focusing on their institutional arm, ATFX Connect. They highlight the importance of Australia as a strategic hub, the challenges of operating in a highly competitive and regulated market, and their plans for regional expansion across APAC. The conversation touches on the integration of advanced technology and multi-asset offerings, the significance of optimal execution tools, and the importance of tailoring solutions to meet the sophisticated demands of institutional clients. They also emphasize their strong regulatory compliance and their commitment to enhancing client experience through innovative tools and infrastructure.#fmps #fmps24 #fmevents #ATFXConnect #APACFinance #InstitutionalTrading #FinancialTechnology #MarketExpansion📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

  • Ready to Scale? Regtech in Australia, A Global View | FMPS:24

    Ready to Scale? Regtech in Australia, A Global View | FMPS:24

    Ready to Scale? Regtech in Australia, A Global View | FMPS:24

    Ready to Scale? Regtech in Australia, A Global View | FMPS:24

    Ready to Scale? Regtech in Australia, A Global View | FMPS:24

    Ready to Scale? Regtech in Australia, A Global View | FMPS:24

    In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.Speakers:Dickie Currer, National Lead, Tech Australia AdvocatesDeborah Young, CEO, The RegTech Association#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.Speakers:Dickie Currer, National Lead, Tech Australia AdvocatesDeborah Young, CEO, The RegTech Association#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.Speakers:Dickie Currer, National Lead, Tech Australia AdvocatesDeborah Young, CEO, The RegTech Association#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.Speakers:Dickie Currer, National Lead, Tech Australia AdvocatesDeborah Young, CEO, The RegTech Association#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.Speakers:Dickie Currer, National Lead, Tech Australia AdvocatesDeborah Young, CEO, The RegTech Association#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    In the effort to elevate Australian fintech on the global stage, RegTech presents a unique and compelling case. Despite the increasing demand for robust compliance solutions, Australia's RegTech sector—ranked third-largest globally—remains underfunded. Join this insightful fireside chat to explore the future of Australia’s RegTech hub and its global potential.Key discussion points include uncovering the hidden opportunities in RegTech that VCs are overlooking, the necessary steps for increased governmental support, the readiness of the local ecosystem to collaborate across global regulatory regimes, and lessons learned from other leading fintech hubs around the world.Speakers:Dickie Currer, National Lead, Tech Australia AdvocatesDeborah Young, CEO, The RegTech Association#fmps #fmps24 #fmevents #RegTech #Fintech #AustralianFintech #GlobalCompliance #TechInnovation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

  • Resilience in Trading: From Third Class To World Class | FMPS:24

    Resilience in Trading: From Third Class To World Class | FMPS:24

    Resilience in Trading: From Third Class To World Class | FMPS:24

    Resilience in Trading: From Third Class To World Class | FMPS:24

    Resilience in Trading: From Third Class To World Class | FMPS:24

    Resilience in Trading: From Third Class To World Class | FMPS:24

    Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Join Mario Singh, Founder and Chairman of Fullerton Markets, as he shares his life story, highlighting the traits that were required starting without financial knowledge to become a financial and trading expert recognised by world-renowned media like CNBC & Bloomberg.#fmps #fmps24 #fmevents #trading #onlinetrading #tradingexpert #tradingjourney 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

  • IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24

    IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24

    IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24

    IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24

    IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24

    IBs and Brokers: The Good, The Bad, The Ugly | FMPS:24

    For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.Speakers:Melody Gao, Senior Lawyer, Sophie GraceJames Perry-Keene, Head of Strategic Partnerships, PepperstoneChristopher Balanzategui, CEO, N3tworx#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.Speakers:Melody Gao, Senior Lawyer, Sophie GraceJames Perry-Keene, Head of Strategic Partnerships, PepperstoneChristopher Balanzategui, CEO, N3tworx#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.Speakers:Melody Gao, Senior Lawyer, Sophie GraceJames Perry-Keene, Head of Strategic Partnerships, PepperstoneChristopher Balanzategui, CEO, N3tworx#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.Speakers:Melody Gao, Senior Lawyer, Sophie GraceJames Perry-Keene, Head of Strategic Partnerships, PepperstoneChristopher Balanzategui, CEO, N3tworx#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.Speakers:Melody Gao, Senior Lawyer, Sophie GraceJames Perry-Keene, Head of Strategic Partnerships, PepperstoneChristopher Balanzategui, CEO, N3tworx#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    For most brokers, IBs and trading educators are invaluable partners, driving highly targeted traffic from key regions. However, without proper management, these relationships can quickly turn sour. In this session, gain an insider’s perspective on the types of licenses IBs need in APAC, the crucial details in IB agreements that both parties must scrutinize, common disputes between IBs and brokers and effective resolutions, and the pros and cons of transitioning from IB to broker.Speakers:Melody Gao, Senior Lawyer, Sophie GraceJames Perry-Keene, Head of Strategic Partnerships, PepperstoneChristopher Balanzategui, CEO, N3tworx#fmps #fmps24 #fmevents #IBAgreements #BrokerPartnerships #TradingIndustry #APACFinance #FinancialRegulation📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents📸 Instagram: https://www.instagram.com/fmevents_official🐦 Twitter: https://twitter.com/F_M_events🎥 TikTok: https://www.tiktok.com/@fmevents_official▶️ YouTube: https://www.youtube.com/@FinanceMagnates_officialDon't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

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Banking the Unbanked with Cryptocurrency: Risks and Rewards (2024)

FAQs

What are the risks and rewards of cryptocurrency? ›

The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure. The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities.

How does crypto help the unbanked? ›

Increasing financial inclusion is critical to alleviating poverty and providing economic opportunities to unbanked and underbanked communities. Cryptocurrencies can fill the need for banking services for those left behind by the formal banking sector by providing wealth storage, payment processing, and more.

What is the effect of cryptocurrencies on the banking system? ›

In conclusion, cryptocurrencies have had a profound impact on traditional banking by challenging the status quo and disrupting long-established systems. Their decentralized nature, cost advantages, and increased accessibility have implications for both individuals and financial institutions.

Why are banks against cryptocurrency? ›

Banks are against Bitcoin because they cannot control it or its financial ecosystem. Bitcoin is decentralized, limited, and based on math and code rules that cannot be altered by centralized institutions. Banks, with Bitcoin, lose power and control.

What is the biggest risk with cryptocurrency? ›

A cryptocurrency's value can change constantly and dramatically. An investment that may be worth thousands of dollars today could be worth only hundreds tomorrow. If the value goes down, there's no guarantee that it will rise again. Nothing about cryptocurrencies makes them a foolproof investment.

What is risk reward in crypto? ›

The Crypto Risk Reward Ratio, often abbreviated as RRR or R:R, is a mathematical formula that assesses the potential gains versus potential losses in a trade. It is a risk management tool used to evaluate whether a trade is worth pursuing.

What is the biggest benefit of crypto? ›

Cryptocurrencies can help transfer funds globally. The transactional cost with the help of cryptocurrency can be minimal or zero. It is negligible as it eliminates the need for third parties like VISA to confirm transactions.

Who benefits the most from cryptocurrency? ›

Cryptocurrency offers a way for the unbanked to access financial services without having to go through a centralized authority. There are many reasons a person may be unable or unwilling to get a traditional bank account.

How does crypto help poor people? ›

Crypto can help combat extreme poverty by creating wealth that is donated to fund high impact interventions, and by building new systems to help drive financial inclusion and alleviate poverty.

How does crypto disrupt banking? ›

Cryptocurrencies operate on blockchains, distributed ledgers that record transactions across a vast network of computers. This erases the need for central authorities, creating a more open and transparent financial system.

Is crypto safer than banks? ›

Crypto is not regulated like stocks or insured like real money in banks. Crypto's high risks can offer big rewards or huge losses.

What are the threats that cryptocurrencies hold for banks? ›

What threats does cryptocurrency pose to banks?
  • Banks risk losing a generation of customers. ...
  • Banks risk losing an important source of inexpensive funding as over time, crypto will capture core deposits from consumers.
Sep 22, 2022

Will crypto destroy banks? ›

Bitcoin's technology relies on algorithmic trust, and its decentralized system offers an alternative to the current system. However, because of the issues it raises and faces, it is unlikely that it will replace central banks anytime soon.

What banks are banning cryptocurrency? ›

Several large U.S. banks, including JPMorgan Chase, Bank of America, and Citigroup, recently banned customers from buying cryptocurrencies with credit cards issued by the banks. They fear that the volatility of cryptocurrencies could leave consumers unable to pay their debts. Several leading U.K. banks followed suit.

Will crypto replace cash? ›

For cryptocurrency to replace cash, several steps need to be taken. First, improvements in technology and infrastructure must be made. This includes enhancing blockchain scalability and reducing transaction times and costs. Second, regulatory clarity must be increased.

What are cryptocurrency rewards? ›

While many speculators buy and sell cryptocurrency for profit, another group of crypto owners enjoy the income created through crypto staking rewards. Staking rewards are a kind of income paid to crypto owners who help regulate and validate a cryptocurrency's transactions.

What types of risks are there in crypto? ›

Learn about the Risk of Crypto Assets
  • Crypto assets are very risky. ...
  • Some crypto asset exchanges and platforms are unregulated. ...
  • Crypto assets are volatile and high-risk investments. ...
  • You may be a victim of hacking, fraud and scams. ...
  • Your crypto assets are not covered by a protection fund.

What are the benefits and risks of investing in cryptocurrency? ›

Synopsis. Cryptocurrency in India offers financial inclusion, protection against inflation, remittance benefits, new investment avenues, fast transactions, and decentralization. However, it faces regulatory challenges, volatility, fraud risk, power consumption, and impact on traditional banking.

What are the negative effects of cryptocurrency? ›

The price volatility, alleged use in criminal activities that may not be easy to map, and high energy consumption for mining the coins are considered some of the key challenges to accepting cryptocurrencies, aside from the fact that these coins do not have any sovereign guarantee or approval.

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