Author: Jonah Roberts, Bankless; Translated by: Deng Tong, Jinse Finance
Cryptocurrency will provide banking services for those without bank accounts.
This phrase has long been the battle cry of the cryptocurrency industry, proving its rapid growth and incorporation into mainstream economic discourse. However, while these words resonate more in developing countries with limited opportunities for 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 plays a role 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 financial landscape established in developed economies
In developed economies such as the U.S., Canada, and Europe, the financial system appears to be functioning well overall. People enjoy the conveniences of banking, reliable payment networks, and government-backed deposit insurance. However, this perceived stability is largely built on public trust, which is continually eroding due to financial crises, inflation concerns, and increasing political polarization.
For example, events such as the recent closures 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 in 2024 found that only 31% are satisfied with the current financial system. This erosion of trust, combined with a changing political climate, is creating an opportunity for the crypto industry to offer alternative value storage and exchange systems.
This distrust is particularly severe in marginalized communities. For example, Black Americans have historically not received mainstream financial services, and an increasing number are viewing cryptocurrency as a pathway to financial independence. Nearly 20% of Black Americans own cryptocurrency, and many see it as a potential tool for narrowing the wealth gap and creating new pathways for social mobility.
However, this opportunity also comes with significant risks, as many crypto assets are still largely speculative or exist in a legal gray area.
Demand for cryptocurrency in developing economies
In contrast, the situation regarding cryptocurrency in developing countries is more clear-cut. Globally, 1.4 billion people lack access to traditional banking services (according to World Bank data), and cryptocurrency can provide tangible benefits, such as:
Self-custody of currency in regions with political instability.
Gaining 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 systems that protect ownership.
These use cases address urgent needs in developing regions where financial instability and limited banking make cryptocurrency an attractive alternative. Stories like that of the San Francisco community in Colombia illustrate how crypto payments help bridge the gap in the underdeveloped banking infrastructure of the Southern Hemisphere.
As cryptocurrency founder Ornanda Rangel mentioned:
"Those who say that cryptocurrency or blockchain has no real practicality are living in a bubble because they reside in countries where the financial system works very well for them, and they have yet to experience what it feels like to have cryptocurrency in a broken financial system."
Although these challenges differ from those faced by developed economies, they illustrate the potential of cryptocurrency to address issues of systemic inefficiency — Northern Hemisphere countries may also explore this opportunity.
Underbanked population in developed economies
Despite developed countries typically having extensive banking systems, millions still lack bank accounts or banking services. In the U.S., about 6% of the population cannot access banking accounts. For these individuals, cryptocurrency can provide a secure means of storing and transferring 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 reducing reliance on banks and relying more on automated technological financial innovation will create a fairer global economy.
If financial power shifts from centralized institutions to decentralized, blockchain-based networks, it could create new wealth distribution opportunities. But this shift is a big "if," depending on whether cryptocurrency can fulfill its promise without replicating or exacerbating existing inequalities.
Digital native economies: Growing awareness of cryptocurrency's potential
One of the most interesting applications of cryptocurrency in the Northern Hemisphere is its compatibility with digital and in-game economies. The younger generation, particularly the 'digital natives,' has already engaged with virtual currencies and assets on online gaming platforms. These digital-first environments highlight the potential of cryptocurrency as a borderless real-time value exchange tool.
One 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, putting 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 the fintech industry can offer.
Moreover, as the application of artificial intelligence in our lives continues to increase, some believe that AI will play a crucial role in managing financial interactions. With the permissionless and automated pathways of cryptocurrency, AI can actually interact with financial systems and make decisions with user consent. This creates an opportunity for cryptocurrencies to provide meaningful functions that traditional finance fundamentally cannot due to its loose and often outdated structure.
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 necessity, residents of developed economies may be attracted to cryptocurrency for ideological reasons — whether due to distrust of existing institutions or a deeper understanding of internet-native infrastructure. As digital transformation accelerates, Northern countries may increasingly embrace cryptocurrency, not out of necessity, but as a conscious choice aligned with a globalized, technology-driven future.
Ten years from now, the question may not be whether cryptocurrency is important in developed countries, but rather how deeply it is embedded in everyday life — from smart contracts managing home loans to decentralized platforms enabling a more globalized financial system.