{"id":39269,"date":"2022-11-09T22:38:42","date_gmt":"2022-11-09T21:38:42","guid":{"rendered":"https:\/\/www.coinpro.ch\/glossar\/unbanked\/"},"modified":"2025-08-08T10:00:14","modified_gmt":"2025-08-08T08:00:14","slug":"unbanked","status":"publish","type":"encyclopedia","link":"https:\/\/www.coinpro.ch\/en\/glossary\/unbanked\/","title":{"rendered":"Unbanked"},"content":{"rendered":"

The term \u201cUnbanked\u201d refers to people who <\/span>do not have access to the traditional banking system and modern financial services<\/b>. In most cases, people who are considered \u201cUnbanked\u201d. In particular, <\/span>People who do not have a stable internet connection or live in a developing country<\/b>, are affected. These people have no way to open a bank account or take out loans. <\/span>They are practically excluded from participating in the global economy<\/b>. In recent years, however, cryptocurrencies<\/a> and blockchain-based technologies have created an alternative way to solve the problem of the unbanked.<\/span><\/p>\n

Blockchain-based technologies such as cryptocurrencies have the potential to give people access to financial products. Through fintechs and industries like <\/span> Decentralized Finance (DeFi)<\/a> and blockchain technology <\/b>people without bank access can be supported. The goal is to achieve global financial inclusion. Through cryptocurrency, people around the world can make transactions without having a bank account. Cryptocurrencies could also serve as a store of value. Unlike fiat money<\/a>, the value of cryptocurrencies is not influenced by central banks. This is particularly relevant for countries with an unstable currency. <\/span><\/p>\n

DeFi and Unbanked<\/h2>\n

An interesting aspect is the decentralized financial services (DeFi) that are made possible by blockchain technology. The term DeFi encompasses a variety of financial products such as loans, insurance and savings programs that are operated via smart contracts<\/a> on the blockchain<\/a>. These products are not dependent on traditional financial institutions and can be used by anyone with a crypto wallet<\/a> and an internet connection. This offers an alternative to people who are excluded from traditional financial services. <\/span><\/p>\n

Another advantage of cryptocurrencies and blockchain-based technologies for the unbanked is that they have lower transaction costs than traditional financial services. In some countries, transaction costs for traditional bank transfers can be very high, especially for smaller transactions. Crypto transactions, on the other hand, often have very low fees, making it easier for people to carry out transactions. <\/span><\/p>\n