El Salvador has a population of 6.5 million people. The traditional banking system only serves 2 million people. 4.5 million Salvadorans have no bank account. They were completely left out by the banking system.
Not having a bank account means these people do not have equal access to the financial system. They are stuck with using cash and limited to local in person transactions only. They have no savings or investment options and they are denied opportunities to improve their lives. Many of us can never imagine this situation.
How Bitcoin changes their situation?
Since the Bitcoin law, not only these people have access to the financial system in El Salvador but they also have unrestricted 24/7 access to a global borderless financial system and new investment options because mobile internet penetration in El Salvador is 100%.
They can have mobile checking account in USD and savings account in BTC. It opens up access to equal investment opportunities without needing permissions by using non custodial wallets.
People who are born into comfortable financial situation living in developed countries will never understand the power of this change. We take basic access to the financial system for granted.
How Bitcoin can change the world?
1.7 billion adults globally have no banking access. Financial exclusion undermines their quality of life, leaves them vulnerable to predatory lenders and prevents them from investing in their future. It also holds the nation’s economies back. Research has estimated that banking the unbanked population could boost national GDP by up to 30%.
Morocco, Vietnam, Egypt, Phillipines, Mexico and Nigeria are the top 6 countries with highest unbanked population with over 60% of the population without access to banking system.
Bitcoin can make a huge difference to people in these countries to uplift them and bring them economic opportunities they could not even dream of until now.