Despite the unpredictable nature of the cryptocurrency market. Many enthusiasts (especially Black enthusiasts) believe it can become an alternative financial system.
History demonstrates that traditional financial institutions consistently underfund and discriminate against individuals of color. Research from the Federal Deposit Insurance Corporation supports this argument by reporting. That low-income Black and Hispanic families have minimal access to the bank.
The Federal Reserve reports that 40% of Black Americans may or may not have a bank, 13% do not have a bank, and 27% rely on other financial services.
OneUnited Bank president, COO and owner Terri Williams shared that “banking while Black” is a term used to describe discriminatory banking practices.
“Everybody always felt that we don’t really care about investing or budgeting,” said Odeniran. “But in essence, we do. It’s just that historically, we have not had resources that allow us to tap in beyond risk. Gaining some monetary freedom that’s beyond paycheck to paycheck.”
Although there are Black banks, many still struggle to get enough investment finance. Also do not have access to the same resources as big banks.
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Olayinka Odeniran, founder of the Black Women Blockchain Council. Says cryptocurrency has become a space where communities of color can support and connect with each other. Without worrying about the bureaucracy of financial systems.
“Everyone has always felt like we don’t really care about the investments or the budget,” said Odeniran. “But essentially we do. It’s just that historically we didn’t have the resources that would allow us to take advantage of outside risk. Also get some monetary freedom beyond the paycheck in the paycheck. “
Despite recent crashes, many still believe cryptocurrency is a better alternative.
According to the Pew Research Center, Blacks, Hispanics, and Asians are more likely to admit to using cryptocurrencies.
Cleve Mesidor, executive director of the Blockchain Foundation, revealed that people of color use cryptocurrencies as “an alternative financial system to operate” without suffering the typical discrimination of banks.
“People of color sometimes have difficulty going to get a bank loan or going to get some sort of assistance from the government or a way to start their business and they’re turned down,” crypto enthusiast Steven Bumbera shared. “Crypto doesn’t care.”
Other cryptocurrency enthusiasts share that the benefits of managing money with blockchain technology outweigh the risks. Crypto loans allow borrowers to get money from a money changer or credit bureau without having to face racial discrimination.
“If you are on chain, and you have a wallet address, you’re a wallet address – that’s it,” says Bumbera.“Crypto doesn’t care about color, race, sexual orientation.”
Enthusiasts believe that crypto can be use to directly fund businesses and organizations without penalizing certain third-party donations when transferring money.
As more people of color enter the market, Terri Williams warns that the new financial limits also come with risks and challenges.
“Crypto is not a competitor to traditional banking, but a complement,” she said. “There will continue to be a need for traditional banking services, but crypto, in moderation, can provide opportunities for wealth building and opportunities to develop new services – such as remittance services – that can better meet the needs of the Black community.”
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