Author: Jonah Roberts, Bankless; Compiled by: Deng Tong, Golden Finance

Cryptocurrency will provide banking services to those without bank accounts. ”

This phrase has long been a rallying cry for the cryptocurrency industry, justifying its rapid growth and inclusion in mainstream economics discourse. However, while these words have limited access to financial services Developers are more resonant, but they don’t fully explain why cryptocurrencies are the most developed Important.

So why are cryptocurrencies useful where the financial system appears to be fundamentally stable and efficient?

In this article, we explore how cryptocurrencies work in advanced economies. play a role in the system—not as a lifeline, but as a system that Choices driven by trust, underbanked populations and the rise of digitally native economies.

The Established Financial Landscape in Advanced Economies

In advanced economies such as the United States, Canada and Europe, the financial system appears to be generally functioning well. People enjoy the convenience of banks, reliable payment networks and Supported deposit insurance. However, much of this perceived stability is based on public trust, which continues to be eroded by the financial crisis, inflation concerns, and increasing polarization.

For example, events such as the collapse of major U.S. regional banks earlier this year have heightened doubts about the reliability of traditional systems, prompting many to look for alternatives

A 2024 study found that only. 63% of Americans say they trust business institutions such as banks, while another Research in 2024 found that only 31% of people are satisfied with the current financial system. This erosion of trust, coupled with the changing climate, is creating an opportunity for the crypto industry to provide alternative storage and exchange systems of value. .

This distrust is particularly acute in marginalized communities, where Black Americans, historically underserved by mainstream financial services, are increasingly turning to cryptocurrencies. Nearly 20% view it as a path to financial independence. of Black Americans own cryptocurrencies, which many see as a potential tool to close the gap between rich and poor and create new pathways for class mobility

However, this opportunity also comes with significant risks, as with many crypto assets. Still mostly speculative in nature, or existing in a legal gray area.

Demand for Cryptocurrencies in Developing Economies

In contrast, the situation for cryptocurrencies in developing countries is more clear-cut globally. There are 14 With billions of people without access to traditional banking (according to the World Bank), cryptocurrencies can provide tangible benefits, such as:

Currency self-custody in areas with unstable regimes

Access to U.S. dollars. Alternative currencies such as stablecoins or Bitcoin can provide a hedge against hyperinflation

Low-cost, borderless payment networks that bypass traditional banking infrastructure

An immutable property rights system that protects ownership rights.

These use cases address pressing needs in developing regions where financial instability and limited banking access make cryptocurrencies an attractive alternative. Stories like this community in San Francisco, Colombia, concretely demonstrate how crypto payments can help fill the underdeveloped banking infrastructure of the Southern Hemisphere.

As cryptocurrency founder Ornanda Rangel mentioned:

“Those who say cryptocurrencies or blockchain have no real utility are doing so because they are living in a bubble. Living in a financial system is perfect for them because they haven’t seen what it’s like to own cryptocurrencies in a broken financial system.”

While these challenges are different from those in advanced economies. They illustrate the potential of cryptocurrencies to address systemic inefficiencies – Northern Hemisphere This opportunity may also be explored.

Underbanked Populations in Advanced Economies

Despite developed countries typically having extensive banking systems, millions of people remain unbanked or underbanked. In the United States, approximately 6% of the population does not have access to a bank account. For these people, cryptocurrencies can provide a safe way to store and transfer money without having to rely on banks.

The opportunities that cryptocurrencies offer to underbanked communities also raise questions about systemic change. A 2024 survey found that 48% of Americans believe financial innovations that rely less on banks and more on automated technologies 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” and depends on whether cryptocurrencies can deliver on their promise without replicating or exacerbating existing inequalities.

Digital Native Economies: Growing Awareness of the Potential of Cryptocurrencies

One of the most interesting applications of cryptocurrencies in the Northern Hemisphere is its compatibility with digital and in-game economies. Younger generations, especially “digital natives”, are already interacting with virtual currencies and assets on online gaming platforms. These digital-first environments highlight the potential of cryptocurrencies as vehicles for borderless real-time value exchange.

A key highlight here is enhanced interoperability. By making wallets more portable, cryptocurrencies enable users to connect their digital goods over the internet in novel ways. For example, placing financial assets on-chain can unlock access to a variety of DeFi applications while using a single wallet to navigate between them. This user experience is unlike anything the traditional banking and fintech industries have to offer.

In addition, as the use of artificial intelligence continues to increase in our lives, some believe that artificial intelligence will play a vital role in managing financial interactions. Permissionless and automated rails using cryptocurrency, artificial intelligenceAbility to actually interact with financial systems and make decisions with user permission. This creates an opportunity for cryptocurrencies to provide meaningful functionality that traditional finance simply cannot provide due to its loose and often archaic structures.

Summary

In the Northern Hemisphere, cryptocurrency adoption is less of a necessity and more of a choice. While developing regions may adopt cryptocurrencies out of practical necessity, residents of advanced economies may be attracted to cryptocurrencies for ideological reasons—whether it’s distrust of existing institutions or a lack of confidence in the internet’s native infrastructure a deeper understanding. As digital transformation accelerates, the global North may increasingly embrace cryptocurrencies, not out of necessity but as a conscious choice consistent with a globalized, technology-driven future.

Ten years from now, the question may not be whether cryptocurrencies matter in developed countries, but how deeply embedded they are in everyday life — from smart contracts that govern home loans to becoming more global. A decentralized platform for the financial system.