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Debunking the narratives about cryptocurrency and financial inclusion
Report

Debunking the narratives about cryptocurrency and financial inclusion



Editorial Rating

8

Qualities

  • Analytical
  • Overview
  • Background

Recommendation

Innovations in financial services may not necessarily translate into improved accessibility for underserved groups. Just as bank accounts are often subject to minimum balance requirements and high fees, and just as deceptively simple products like subprime and payday loans come with onerous repayment terms, cryptocurrencies create a number of risks not immediately – if ever – apparent to many users. Researcher Tonantzin Carmona looks at the realities of current decentralized finance offerings in this astute study and assesses whether they will live up to their promise of greater financial inclusion.

Take-Aways

  • Proponents view cryptocurrencies as a way to serve the unbanked.
  • A disparity exists between what crypto purports to do and what it can do for the financially underserved.
  • Improving access to existing financial services may be more effective than crypto in increasing financial inclusion.

About the Author

Tonantzin Carmona is a fellow at the Brookings Institution.