How Bitcoin served as a refuge for the unbanked

Key facts:
  • Lack of education is an obstacle to financial inclusion in Latin America.

  • Unlike banks, Bitcoin is always available, regardless of the date and time.

Bitcoin has gradually occupied spaces since its launch in 2009, so much so that traditional financial institutions and many governments, under threat from the level of acceptance it is gaining among the public, have attempted to discredit or try to imitate the cryptocurrency with digital currency offerings.

In regions such as Latin America, the level of acceptance is derived, among other factors, from the fact that Bitcoin (BTC) It can become a savior for those who have been excluded from the financial system by the same bank Which, in most cases, criticizes cryptocurrency.

According to a study by the financial services company Deloitte, the causes of financial exclusion in Latin America are poverty, the informal economy, and a lack of opportunities in education. Added to this is the differentiation in access to credit, by gender, in addition to the lack of infrastructure (particularly in rural areas), coupled with limited and insufficient education.

Based on this, analysts of this company assert that the use of cryptocurrencies such as Bitcoin will allow “to reduce transaction costs and enhance financial inclusion, although they see the need for strict regulation, including linkage with real money, and an innovative response from banks, which want to remain relevant.”

However, Deloitte’s study highlights that the main obstacle to the diffusion of new technologies in the region is the lack of Financial education, followed by the economic characteristic and the absence of incentives through public policies.

Financial education is the first brake on the adoption of technologies like Bitcoin in Latin America. Source:

It is important to note, on the one hand, that each country’s policies toward bitcoin differ greatly. There are countries where this is illegal, in others it is not regulated and in others it is accepted as a method of payment, for example, the prohibition of selling bitcoin by two banks in that country.


The condition of the area that continues The opposite meaning of Argentina is El SalvadorThe Central American country has adopted Bitcoin as legal tender and is promoting its use through a wallet developed by the same government, called Chivo Wallet.

In this way, Salvadorans gain access to cryptocurrency and learn how to use it, especially for those who do not have access to banking services. until 2018, Only 30% of El Salvador residents have a bank account. Now, any Salvadoran can access goods and services by paying in bitcoin through the digital wallet.

Why is Bitcoin the solution for the unbanked?

Since 2020, banks have been feeling increasing pressure from Bitcoin A decentralized financial system that can separate them from the citizens. Germany’s Deutsche Bank noted this last year, noting that “cryptocurrencies represent a growing threat to monetary and financial stability, and central banks and governments are unlikely to abandon their monetary monopolies.”

The truth is that Bitcoin can be a key for people to access free money, without censorship and without the risk of it falling into the hands of politicians. It is enough to have a mobile phone and the Internet, This is why it is a problem for banks.

To understand this, it is important to know that Bitcoin is a peer-to-peer (P2P) electronic cash system, but it is not only about money (bills, coins, or any other instrument for keeping accounts between people), but also about the rules and mechanisms that make this cash exist. It can be used, as indicated in Criptopedia, the educational section of CriptoNoticias.

In fact, it is such a powerful tool that “Bitcoin, using an analogy, can be said to do the jobs of the dollar, the Federal Reserve, and the banking network” all at once.

In this way, the cryptocurrency is considered The fourth best way to manage money today. Bitcoin is a technology that combines the old financial form with new technologies. “Bitcoin allows transactions to be processed with the privacy and convenience of money, and since it works digitally, it also adds the ability to save small to large amounts of money and move it to and from anywhere in the world. Best at low cost »explains Cryptopedia.

Unlike banks, Bitcoin funds can be transferred to other Bitcoin accountsAnywhere in the world 24/7/365. This means that Bitcoin has no holidays and no bosses.

Another factor that gives freedom to Bitcoin users is that everyone can protect their own money and transfer it without asking for permission from a third party. In essence, Bitcoin does not have a “know your customer” (KYC) policy. While banks ask for a large number of requirements (data, receipts, references), many of them are unnecessary.

However, bitcoin selling platforms have been forced to order “know your customer” due to pressure from organizations such as the International Financial Action Task Force (FATF), which seeks to maintain state control over the funds.

The thing that also separates bitcoin from central banks, which are run by small groups, whose members change depending on the president in power, is that Cryptocurrency is handled by anyoneEven a person who wants can “work” in this system, insure it, keep accounts and issue coins.

21 million bitcoins

On the other hand, the total supply of coins in the Bitcoin system has been determined since its launch in 2009 and will reach a maximum of 21 million Bitcoins in the year 2140.

The latter contrasts with cases such as the United States, a country that has not stopped issuing dollars in huge amounts, especially since the beginning of the epidemic.

The US Federal Reserve has printed more than $6 billion. Source:

Until last March, the Fed recorded an injection of moneyup to $6.3 billionWhich affected the increase in inflation, which reached a new annual record level of 8.5%, the highest in 41 years.

With everything described above about Bitcoin and the different attitudes to cryptocurrency in countries such as Argentina and El Salvador, the digital currency created by Satoshi Nakamoto in 2009, according to the description provided earlier, does not seem to represent cracks in a banking system that is lagging behind.

The latest rejection of a financial institution towards Bitcoin was announced when the Central African Republic adopted the cryptocurrency as legal tender. The authorities of the Central African Economic and Monetary Community (CEMAC) have indicated that this poses a risk to “monetary stability” in the entire region.

Although the truth is that unbanked people who come to Bitcoin can raise their quality of life by using a system that allows them to conduct transactions and own their own money without having to outsource to bank accounts they don’t have, something that the authorities put in place. They don’t like it because it’s out of their control.






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