Author: Jonah Roberts, Bankless; Translated by: Deng Tong, Jinse Finance
Cryptocurrency will provide banking services to those without bank accounts.
This phrase has long been the battle cry of the cryptocurrency industry, proving its rapid growth and integration into mainstream economic discourse. However, while these words resonate more in developing countries with limited access to financial services, they do not fully explain why cryptocurrency is important in the most developed nations.
So, why is cryptocurrency useful in places where the financial system appears fundamentally stable and efficient?
In this article, we will explore how cryptocurrency functions in developed economies—not as a lifeline, but as a choice driven by institutional distrust, underbanked populations, and the rise of digital native economies.
The established financial landscape in developed economies
In developed economies like the United States, Canada, and Europe, the financial system seems to operate well overall. People enjoy the convenience of banks, reliable payment networks, and government-backed deposit insurance. However, this perceived stability is largely built on public trust, which is increasingly eroded due to financial crises, inflation fears, and rising political polarization.
For example, events earlier this year, like the collapse of major regional banks in the U.S., have intensified doubts about the reliability of traditional systems, prompting many to seek alternatives.
A study in 2024 found that only 63% of Americans trust commercial institutions like banks, while another study from 2024 found that only 31% are satisfied with the current financial system. This erosion of trust, coupled with a changing political climate, is creating an opportunity for the crypto industry to provide alternative value storage and exchange systems.
This distrust is particularly acute in marginalized communities. For instance, African Americans in the U.S. have historically been underserved by mainstream financial services, and an increasing number view cryptocurrency as a means to achieve financial independence. Nearly 20% of African Americans own cryptocurrency, and many see it as a potential tool to narrow the wealth gap and create new pathways for class mobility.
However, this opportunity comes with significant risks, as many crypto assets remain predominantly speculative or exist in a legal gray area.
Demand for cryptocurrency in developing economies
In contrast, the situation for cryptocurrency in developing countries is more pronounced. Globally, 1.4 billion people lack access to traditional banking (according to the World Bank), and cryptocurrency can provide tangible benefits such as:
Self-custody of currency in politically unstable regions.
Access to stable currencies like the dollar or alternative currencies like Bitcoin can hedge against hyperinflation.
Low-cost, borderless payment networks that bypass traditional banking infrastructure.
Immutable property rights system that protects ownership.
These use cases address urgent needs in developing areas, where financial instability and limited banking make cryptocurrency an attractive alternative. Stories from communities like San Francisco in Colombia specifically demonstrate how crypto payments help bridge the underdeveloped banking infrastructure in the southern hemisphere.
As cryptocurrency founder Ornanda Rangel mentioned:
"Those who say that cryptocurrency or blockchain has no real utility are living in a bubble, as they reside in countries where the financial system works very well for them, and they have not yet experienced what it feels like to have cryptocurrency in a broken financial system."
While these challenges are different from those in developed economies, they illustrate the potential of cryptocurrency to address systemic inefficiencies—northern hemisphere countries may also explore this opportunity.
Underbanked populations in developed economies
Despite the fact that developed countries typically have extensive banking systems, there are still millions of people without bank accounts or underbanked. In the United States, about 6% of the population cannot access a bank account. For these individuals, cryptocurrency can offer a secure way to store and transfer funds without relying on banks.
The opportunities that cryptocurrency provides for underbanked communities also raise questions about systemic change. A survey in 2024 found that 48% of Americans believe that reducing reliance on banks and more financial innovations relying on automation technology will create a fairer global economy.
If financial power shifts from centralized institutions to decentralized, blockchain-based networks, it could create new opportunities for wealth distribution. But this shift is a big 'if', dependent on whether cryptocurrency can fulfill its promise without replicating or exacerbating existing inequalities.
Digital Native Economies: Growing Awareness of the Potential of Cryptocurrency
One of the most interesting applications of cryptocurrency in the northern hemisphere is its compatibility with digital and in-game economies. The younger generation, especially 'digital natives', has already interacted with virtual currencies and assets on online gaming platforms. These digitally-focused environments highlight the potential of cryptocurrency as a borderless real-time value exchange tool.
A key highlight here is enhanced interoperability. By making wallets more portable, cryptocurrency enables users to connect their digital goods through the internet in novel ways. For example, placing financial assets on-chain can unlock access to various DeFi applications while navigating between them using a single wallet. This user experience is unlike anything traditional banks and fintech can offer.
Moreover, as the application of artificial intelligence in our lives increases, some believe that AI will play a crucial role in managing financial interactions. With permissionless and automated tracks of cryptocurrency, AI can effectively interact with financial systems and make decisions with user consent. This creates an opportunity for cryptocurrency to offer meaningful functionalities that traditional finance is fundamentally unable to provide due to its loose and often outdated structures.
Summary
In northern hemisphere countries, the adoption of cryptocurrency is no longer a necessity but more of a choice. While developing regions may adopt cryptocurrency out of practical need, residents in developed economies may be drawn to cryptocurrency for ideological reasons—whether due to distrust of existing institutions or a deeper understanding of internet-native infrastructure. As digital transformation accelerates, countries in the global north may increasingly adopt cryptocurrency not out of necessity, but as a conscious choice aligned with a globalized, technology-driven future.
A decade from now, the question may no longer be whether cryptocurrency is important in developed countries, but rather how deeply embedded it is in daily life—from smart contracts managing home loans to decentralized platforms enabling a more global financial system.