Providing the unbanked and underbanked with financial inclusion is a key driving point of the blockchain and cryptocurrency industry.
As a result of the current pandemic, cryptocurrency and blockchain adoption will continue to grow as the financial industry continues to be transformed. The number of unbanked and underbanked citizens in the United States will continue to grow with COVID-19 still immanent.
According to Ken Weber, Ripple’s Head of Social Effects, there are currently about 70 million people living outside the financial system in the US and 1.7 billion globally. Members of these households often need to allocate fees and interest to 10 percent of their disposable income, a staggering sum which could have been used instead to pay for basic services and food.
Weber says that this can be overcome by blockchain and digital asset technologies such as XRP, as they can revolutionize the way the unbanked and underbanked connect with the finance industry. These innovative innovations are transforming cross-border payments and remittance systems, allowing transactions to be carried out more effectively, seamlessly and at a lower cost. Weber clarified that a digital asset such as XRP ties the dots between two currencies and makes it easier, cheaper, and more secure to pass them. The settlement time on cross-border transactions can be reduced from three days to a mere three seconds by using an expansive global blockchain network such as RippleNet.
He added that this would encourage Ripple to step forward with financial inclusion and build “economic equity and opportunity.”
Among the variety of innovative innovations provided by Fintech company Ripple, its RippleNet Cloud recently obtained SOC 2 certification, a CPA approval stamp for Device and Organization Controls 2, which means that RippleNet can provide its users with excellent protection and privacy.