The New Operating System for Money: Digital Dollars Power Global Financial Inclusion

The New Operating System for Money: Digital Dollars Power Global Financial Inclusion

USDC Executive Insights

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Lack of access to financial services is a major impediment in efforts to eradicate poverty and create a more economic opportunity. Blockchain technology is enabling a new wave of inclusion around the world that is simply not possible with traditional financial intermediaries. 

Circle’s mission is to increase global economic prosperity through the frictionless exchange of value. We are helping develop the future of digital assets and technology to solve real-world problems and creating powerful infrastructure to foster financial inclusion through our USDC and Euro Coin stablecoins to help blockchain financial technology fulfill its immense potential.

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The Opportunity for Greater Financial Inclusion

According to the World Bank, nearly 1.7 billion people worldwide are underbanked. This drastically affects their ability to participate in the global economy and exposes them to unscrupulous or unregulated informal lenders. Yet more than two-thirds of the 1.7 billion people own a smartphone.

This makes blockchain solutions like USDC payment uniquely suited to make a decisive impact for the underbanked, since they can turn internet connected devices into accessible, cost-effective financial services endpoints. Extending digital dollars and euros can improve  access for underserved populations in ways that traditional finance simply can’t match.

Contrary to popular misconceptions, it is not just people in underdeveloped nations who are underbanked. According to the Consumer Financial Protection Bureau, an estimated 12 million Americans take out predatory payday loans each year. 

Underbanking is a major humanitarian issue – when combined with high levels of inflation, lack of traditional finance can put economic opportunities out of reach or start a cycle of high-interest loans and financial insecurity. TheNewGlobalOperatingSystem-07

The exorbitant cost of many financial services is a critical issue, with remittance charges a case in point. Many developing markets rely on these cash inflows sent by workers to their home countries. By 2030, such inflows could exceed $5 trillion.

Some of the world’s most economically vulnerable populations rely on these transactions for survival. An average cost of 6.3% in remittance charges can deal a significant blow to the spending capabilities of such people.

The problems are exacerbated by the added pressures exerted by increasing regional conflicts, climate change impact, and general economic instability.

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Circle’s Role in Financial Inclusion

Circle's USDC has had a significant positive impact in several real-world situations.

For example, an NGO chose USDC payments on the Stellar blockchain to deliver humanitarian aid to refugees. Also, during the peak of the COVID pandemic, USDC bypassed dictatorial controls to deliver vital assistance to frontline healthcare workers in Venezuela.

Mexican workers in the United States rely on USDC for securely transmitting cross-border remittances to their families in Mexico. Institutions and non-profits working in Africa are increasingly using USDC to connect to global capital flows.

Internally, our culture is built on Diversity, Equity, and Inclusion (DEI) so we can harness a wide range of perspectives and create solutions that address the needs of different audiences. We’re building our company this way not just because it’s “the right thing to do,” but because it makes tremendous business sense that our talent base reflects our customer base.

To learn more about our trajectory and detailed insights into USDC success stories from around the globe, please read the full report on our Executive Insights, The New Global Operating System For Money.

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