How Are Cryptocurrencies Providing Solutions to Everyday Financial Problems?

Finding solutions to everyday problems is one of the key areas where the financial industry is moving at a fast pace. The huge range of fintech companies springing up across the globe is an example of this, with 14 new unicorns emerging in 2024 as $33.7 billion was invested in private placements. Perhaps the most innovative and eyebrow-raising aspect of the changing financial landscape comes from the way that digital currencies are providing answers to some of the most pressing questions.  

Stablecoins Are Used for International Transfers

It’s a story as old as time; immigrants looking for a better life in a new country achieve some success and want to send money to their families back home. The receipt of migrant remittances has traditionally been a huge part of the finances of many countries, helping lower poverty levels in countries such as Uganda, Ghana, and Bangladesh, according to this International Monetary Fund report. 

The flow of cash around the world varies according to the shifting economic situation. Incoming remittances once made up a huge part of the economies of Spain and Ireland, for example. But these countries are now better known for accepting immigrants who send money home than for receiving transfers from their own citizens living abroad. What didn’t change throughout most of history was the cumbersome and costly nature of sending cross-border transfers. Products like spices and fabrics were initially used, before the Hawala system and physical money changed the way we make transfers.  

Stablecoins have revolutionized this process by allowing instant and secure transfers anywhere on the planet. Coins such as Tether and USD Coin are pegged to the dollar, meaning that there is no risk of price volatility affecting the amount that is sent and received.  According to the World Economic Forum, price stability is a key factor that has allowed the supply of stablecoins in circulation to rise to over $200 billion.

A lot of people are interested in how this has affected crypto, and mBit casino has put together a quiz that asks you to guess the crypto based on today’s prices. While it’s a fun idea, it also reveals how the prices move constantly, so even those people who hold the likes of Cardano and Ethereum might not have a clear idea of the current price. With stablecoins, there’s no need to guess.

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Bitcoin Slots Make Gambling Safer and Faster

The advent of online gambling at the start of this century represented a huge step forward. Players could now play slots and table games conveniently at any time. Yet, the process of adding and withdrawing funds was still one of the weak points. Many players used wire transfers, which can be slow and expensive. 

While e-wallets and prepaid cards have helped add more variety to this landscape, they aren’t the only step forward. In fact, it's the huge range of Bitcoin and crypto slots that has caught the eye of many players. They’re split into categories such as jackpot slots and classic slots, with a range of themes including warriors, wild animals, and sports to appeal to every type of player. Crypto-based characters are added to games like mBit Lucky Streak to inject extra excitement into the crypto slots.   

As well as Bitcoin, tokens such as Ethereum, Dogecoin, and Litecoin can all be used to add funds and withdraw any winnings. These are regarded as arguably the safest ways to send money when gambling online, as a decentralized network is combined with cryptography techniques to make transfers transparent and irreversible. Transfers are also extremely fast, meaning that there’s no delay when you get started or decide to take out your winnings.

There’s little question that this kind of approach has had an enormously positive impact on the gambling world, encouraging players from around the globe to try their hand at the multitude of games on offer. And cryptocurrency’s international nature is an added benefit here - you don’t have to worry about converting your funds if you want to play at a casino in another country.

Easier to Get Loans and Financial Inclusion 

Attempts to lower the number of unbanked people have had varying degrees of success in the past. While this issue is typically associated with developing nations, over 5% of US residents didn’t have a bank account in 2019. This leads to financial exclusion, as these people can’t get access to basic financial services such as loans and debit cards. 

Morocco, Vietnam, and the Philippines are ranked among the nations with the biggest percentage of their population not having access to bank accounts. It’s perhaps no surprise that these countries have seen impressive growth in their use of digital currencies. These tokens offer a way of paying bills, sending money abroad, and carrying out other online financial activities.

The rising popularity of decentralized finance is one of the most interesting trends in the economy. This provides a way for people to use their cryptocurrencies to obtain loans, to offer loans, and to access other types of traditional financial services without going through a bank. The sector is still in its early stages, but it’s showing signs of being a potentially major player in the global economy by giving us new ways to get all the financial services we need a lot more easily. It could even become a way for first-time buyers to get hold of a mortgage in the future.

These are just three of the standout examples that reveal how cryptocurrencies are making a difference to the way we resolve common financial issues. As these tokens increasingly move into a mainstream position, we can expect to see more people use them to solve different problems that perhaps didn’t seem to have a sensible solution in the past.