On September 27, Coinbase CEO Brian Armstrong tried to focus his employees’ work on the company’s core mission: “Provide financial freedom for people around the world.” Armstrong defends a narrow interpretation of Coinbase’s mission to create the best product because it is “already very ambitious” and because companies in general cannot succeed if their goals “include all forms of equity and equity”.
Armstrong’s perspective is not unique to Coinbase and represents the broader performance of a group of whites and saviors in the technology industry based on the belief in the product’s merit. This belief is especially noticeable in cryptography due to its diversity. Perspectives such as Armstrong, who comes from a cryptocurrency foundation with a goal, ignore and insult people and organizations on the ground who are doing important work to strengthen communities. Furthermore, these opinions overestimate the ability of cryptocurrencies to cope with economic isolation caused by structural as well as technical problems.
On the subject: Brian hated Armstrong’s greed
Cryptocurrency technology offers key solutions and features to increase financial inclusion. Payments can be made at places where cash can be stolen and bank accounts inaccessible. It can also be performed anonymously and linked to contracts, all without the need for third parties.
However, the technical benefits of cryptocurrencies do not fully match the root causes of economic isolation. So while companies like Coinbase are doing an important job of spreading cryptocurrencies, achieving financial freedom requires more economics, and cryptocurrencies need to be honest about their ability to increase financial inclusion as they consider their own limitations. If they are not interested in economic prosperity and freedom, that’s fine – after all, the ultimate goal of the company is the end result. But if crypto companies want to legitimately advertise their social mission, they must go behind the computer screens to remove the restrictions on their technical products. Other than that, their clichéd ideas about economic prosperity can be compared to an investment bank’s claim that it gives economic freedom to the world by increasing market liquidity.
About the topic: No, blockchain technology can not solve everything
While cryptocurrency offers new ways to create a new financial system, technology and diffusion cannot address the root causes of economic isolation alone. Today, 1.7 billion people lack access to a bank account, and billions of people lack access to other important financial services because these societies have long been ignored and persecuted by institutions. Among those who have access to the financial system, many are trapped in a debt cycle with no means of creating wealth. According to The Boston Globe, the average net worth of non-immigrant African-American households in Boston is $ 8.8 The story of marginalization that the cryptocurrency will have to contend with is manifested in a lack of communication, distrust of technology, economic illiteracy. , and economic and social inequality. Historic.
Cryptocurrency requires internet access. Today, only 59% of the world’s population has access to the Internet. Smartphones, which act as a minor barrier to people’s access to the internet, have a penetration rate of only 45%. However, these statistics mask the fact that many people with internet or smartphones may not have a stable connection or permanent access to power. The overall result is a digital divide that prevents billions of people from using cryptocurrency.
Crypto is a new technology that seeks to revolutionize some of the simplest forms of everyday life. Fiat currency is not just an everyday tool, it is the basis of human existence. Lack of trust in cryptocurrency is to be expected, especially when people cannot see the actual transaction, and when simple mistakes like a forgotten password can make the funds unattainable. Distrust is also higher among people with low incomes and limited education – the same people who are more likely not to have access to banking services or do not have adequate banking services.
Financial illiteracy is also associated with mistrust. Financial institutions can offer challenging financial products or training, especially in emerging markets, and some benefit consumers through products such as loans. Lack of financial knowledge also stems from the inability to access resources or spend enough time understanding financial products.