According to estimates, there are about 190 million unbanked persons in India.
Economic growth, financial health, and job creation may all be boosted by financial inclusion. People with access to financial services may feel more in control to make choices that will enhance their quality of life. The globe over, however, financial education is still a problem. The S&P Global Financial Literacy Survey estimates that 3.5 billion adults worldwide, or 77% of the adult population, do not comprehend fundamental financial concepts. Additionally, the issue is even worse for individuals living in poor nations.
The number of unbanked persons in India is around 190 million. The RBI used a scale of 0-100 to assess the availability, use, and quality of financial services throughout the nation in the first-ever Financial Inclusion Index, which was published in 2021. Only about 10 points of growth in financial inclusion occurred in India between March 2017 and March 2021. These figures demonstrate that there is still a long way to go even if several programs have been started to increase financial inclusion in the region.
India can use Bitcoin to open doors and spur economic expansion, which will ultimately have a significant influence on financial inclusion. Although some might doubt its effectiveness, we think Bitcoin is the instrument that can not only help individuals who are excluded from the traditional financial system but also impact societal change.
Taking care of the unbanked By making financial services available to everyone, regardless of social status, geography, or income, Bitcoin offers a solution for the unbanked. A huge section of the people in Africa, one of the top case studies in this area, lacks access to banking services. The global economy is now accessible to people who were shut out by major financial institutions thanks to Bitcoin. This provides a solution for the 190 million unbanked individuals in India.
Bitcoin is a substitute for traditional banking. Bitcoin has a great deal of potential for growth in India. By addressing both individual financial requirements and business endeavors like remittance, e-commerce, payments, wealth preservation, and social good, Bitcoin may close the economic divide in the nation. Regarding remittances, it overcomes the drawbacks of conventional banking by offering cheaper costs, faster service, and around-the-clock access to assets.
The increasing number of tech-savvy Indians. The percentages of people using the internet and smartphones indicate a significant shift in interest in technology solutions. The percentage of people using the internet now is 45%, up from just 4% in 2007. Smartphone use is expected to increase at a similar rate, from an anticipated 60% penetration in 2021 to a 96% projection for 2040. This emerging technological trend has the potential to expand businesses, create jobs, and boost the economy as a whole. With this infrastructure now in place, Indians are ready to move toward virtual currencies like Bitcoin.
Paxful is committed to investing in programs that promote financial inclusion and education because it is aware of the beneficial economic effects that financial literacy can have. We’re witnessing more interest in Bitcoin throughout the nation by hosting meet-ups and events locally. India was our fourth-largest nation in terms of trade volume only last year with $240m moved there. However, despite these figures, there is still work to be done. Only with education can there be a rise in financial inclusion and widespread acceptance. Building a financial system that benefits the 100%, not just the 1%, is our purpose, and we look forward to achieving it one Bitcoin at a time.
