It was one of cryptocurrency's most powerful, emotional promises: "banking the unbanked". Not having a bank account limits financial opportunities, increases dependence on cash, and excludes people from global economic systems.
Bitcoin's vision was simple: The 1.7 billion people worldwide without bank accounts would use their mobile phones to leapfrog traditional finance, finally entering the global economy.
It was a noble goal. However, the attempt to achieve it was a complete failure.
The Reality of Failure
Until 2022, less than0.5%used of the unbanked population worldwide used cryptocurrency.
Since then, these statistics improved toroughly 10%, but onlybecause of factors like: Covid-19, crypto-industry investment in 2024 US elections, and the subsequent global economic uncertainty caused by Trump tariffs.
This rapid, phenomenal growth in crypto adoption is NOT because ofimproved financial literacy or increased security of cryptocurrencies. The lack of security in the crypto space is evident from the2024 crypto crime report.
To summarize, crypto remains, primarily, a speculative tool for the "already-banked" in wealthy countries. Those in less stable economies, especially after Trump tariffs, reportedly favor stablecoins like USDT, DAI, and USDC over speculative cryptocurrencies like Bitcoin, Ethereum, TON, etc.
Why Crypto Excludes, Not Includes
The truth is, cryptocurrency is fundamentallyunsuitablefor the financially vulnerable. Instead of helping, it creates new, insurmountable barriers.
To "bank the unbanked," a system must be simple, stable, and safe. Crypto is the exact opposite:
- Technical Complexity: It requires smartphones, reliable internet, and the technical knowledge to manage and protect private keys.
- Most crypto users fail to understand that the cryptocurrencies they hold in centralized exchanges are less like “digital assets" protected by passwords and multi-factor authentication and more like “IOU (I-owe-you) receipts" for exchange-owned crypto.
- These exchanges have full control. They can halt withdrawals any time. Theyownthat crypto.
- Extreme Volatility:The poor cannot afford to have their life savings lose50% value in a single crash.Stability is essential for survival, and cryptocurrencies, especially ones that are not stablecoins, promise a lot of it, but offer almost none
- High Fees: Transaction "gas fees" on networks can cost $1 or more, making it costlier than mostly-free alternatives like UPI, PIX, M-Pesa, SEPA Instant, and others for the small, everyday payments people need to make regularl
- Total Risk: There is no deposit insurance. No fraud protection. No password reset. If you are scammed or make a simple mistake, your money is gone forever
This isn't financial inclusion. It's a system that excludes more people than it serves.
What Actually Worked? (The Real Revolution)
While the crypto world was busy creating speculative tokens, real financial inclusion was happening elsewhere—and it didn't need blockchain, tokens, or speculation.
Kenya's M-Pesa
In Kenya, M-Pesa reached over 90% of Kenya's adult population.
How? It used simple SMS technology that works on anybasic mobile phones, no internet required. It wasn't about speculation; it was a "useful service" that solved real-world problems. Studies show it single-handedly lifted 2% of Kenyan households out of poverty.
India's UPI
In India, the government built the Unified Payments Interface (UPI).
It's aninstant, free-to-use payment systemthat serves billions. It processed 21 billion transactions in a singlemonth—more than Bitcoin has processed in its entire existence—instantly, and mostly for free.
SEPA Instant
Instant and mostly free transactions (in Euros) across 35 nations.
Postal Banking
In remote regions throughout the world, where banks find it unprofitable to set up branches, post offices are providing the necessary banking services to the general public.
While this form of banking has proven extremely helpful to the remote, unbanked people, in the US, this form of bankingis being obstructed by the existing banksjust because they don't want "competition."
Simple Truth: 60 countries worldwide, including many developed ones like France, UK, Japan, South Korea, Italy, New Zealand, Ireland, and Switzerland offer some form of postal banking services to their citizens. The US Does Not.
Even Canada, after its ups and downs, has resumed postal baking because the people demanded it. In US, resolutions favoring postal banking get crushed by the rich banks lobbying against it.
These are all examples ofactualfinancial inclusion, built on public infrastructure, not speculation.
A Case Study:Nigeria
Nigeria is often cited as an example of crypto adoption success. Despite being the one of the largest African economies, it once had the highest percentage of unbanked population.
By 2024, this percentage increased to over 10%, up from 0.5% in 2022. However, as mentioned earlier, that'sonlybecause Nigeria faced asevere economic crisis.
Thisbehavioris similar to how the whole world fled to gold and crypto during the global economic crisis caused by Covid-19 pandemic. In fact, it is still in more-or-less the same state due to ongoing global economic crisis caused by Trump tariffs.
When economic conditions improve, people arevery likelyto sell gold and crypto to invest in real businesses.
Moreover, any statistic that theunbankedpopulation in Africa is adopting cryptois entirely flawed. In most African countries, anyone with a mobile phone and an id can easily open a basic bank account through "mobile money operators." Kenya achieves this with M-Pesa, while Nigeria has its own service providers.
Youcan'tsayunbankedpeople are investing in crypto, whenthey're literally buying crypto online by paying through their bank accounts!
The Promise Was a Lie
The above examples that truly achieved financial inclusion prove that the "bank the unbanked" promise was never about technology. It was simply about helping people by solving their problems and making their lives easier.
Crypto promotersusedthe unbanked people as a moral shieldto justify speculation. Such promises are only meant to distract the new investors from its reality.
Financial inclusion might have just been a lie that was spread to get more people to invest in crypto.
I'm sure you have something to add. Please let me know in the comments.
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