This is an opinion editorial by Ray Youssef, CEO of Paxful and cofounder of the Built With Bitcoin Foundation.
Global wealth inequality is growing around the world. With inflation, conflict and the pandemic forcing many into extreme poverty, the top 1% are accumulating more power than ever before – capturing nearly 20 times more global wealth than the bottom 50%. And the rise of inflation is adding more fuel to the fire, with U.S. numbers rising to 9.1%. While we are all feeling its effects, many say lower income households are feeling it the most, with tight budgets getting hit by the rise of rent, gas and overall living costs. While bitcoin is not a silver bullet, it’s a strong solution for minimizing the wealth gap and opening the door to financial inclusion where fiat has failed.
Global remittances are one of the most vital sources of income for the emerging markets, but few money transfer companies exist that comply with local regulations. This forces people into using companies that charge higher fees and puts less money into the pockets of the people who need it most. Bitcoin fixes this, providing a better alternative to the way people send money with lower fees, faster speed and access for the unbanked. In El Salvador, where bitcoin is legal tender, it is estimated that money service providers will lose $400 million a year in commissions for remittances. People all around the world use the Bitcoin network to send money abroad in peer-to-peer fashion, no longer having to pay third-party fees to send money to family. Take Angela Cunha, for example, a Paxful user in Brazil. Angela moves bitcoin to and from her family members in the U.S.and with bitcoin, she is able to transact quickly and avoid expensive remittance fees.
The role of wealth in politics has also become an important issue, as the powerful few control many of the decisions that affect our financial well-being. For example, when a country decides to devalue or demonetize a currency, as we’ve…
