What is Unbanked?
Let's find out Unbanked meaning, definition in crypto, what is Unbanked, and all other detailed facts.
Individuals who are unbanked are those who are unable to obtain basic banking products and services. The majority of them are from marginalized social groups and are consequently rejected by traditional financial institutions for a variety of reasons. People who have chosen not to use banks or other standard financial services are also considered unbanked.
The majority of the unbanked are often people that have low-income and cannot afford or meet the conditions for obtaining a bank account. Many governments put efforts into offering new financial products that can help reach out to unbanked communities through microfinance and other techniques. However, many banks continue to turn down low-income consumers because they lack sufficient resources.
The crypto ecosystem's collective purpose is to promote financial inclusion through digital assets, smart contracts, and other blockchain-based technologies. By far the most promising answer for the unbanked is the Bitcoin and DeFi projects, which offer revolutionary new apps that mirror established financial goods and services that are freely accessible to anyone.