One of the Digital Payment Tech Enthusiast opined, that the only way to win the unbanked and dominate that market is to blend with GSMA network. They are ahead on digital identity. Unbanked loves mobile money agents and retailers. They won’t go inside a bank to use Moneygram.
Further stated, that the unbanked populations do not care on financial markets and that’s a fact. They already have market resources and products for over two decades. Bring your system to them and you’ll win.
At RippleSwell day two, WEFs Sheila Warren discusses why mass adoption of crypto is hindered until there is progress towards solving for digital identification.
Sheila Warren, Head of Blockchain Data and Digital Assets at the World Economic Forum stated, we have not yet really solved any problem. This is a huge issue. And, I think until we solve that problem we are really impeded and hampered in how much adoption we can actually realistically see.
This is the reason for why a lot of activity has been relegated to bank to bank settlements and things like this, but the identity question is not critical, because they are known institutions. A known customer base, etc. Some of those things are kind of solved. And, what you are doing is really putting an additional parallel system in that everyone agrees is going to be compliant. There’s not a huge concern there.
But as we really move to the unbanked or underbanked. There are some threshold questions. One is the goal to get some of these people in to the traditional system or not. Because if it is, it is a very different approach to CBDC than if it is not.
Ripple (XRP) Making Financial Inclusion Possible
It is well known that among the founding ideas for Ripple, it is to expand the global financial inclusion for everyone. They wanted to be approachable by more than just those in the wealthy nations.
The fact is that the traditional financial system is antique, broken and the design is outdated. There is a lot to be done when it comes to serving the needs of those in emerging markets. This is very often overlooked by financial service providers.
The pandemic has led to an increase in the numbers of those without access to affordable financial services. Ripple are doing their best to make financial inclusion possible for all and to economically empower everyone globally.