At the annual Trustech conference, an event participated by leading payment, identity and security experts, France-based bitcoin blockchain data startup Rennes CEO Gilles Cadignan emphasized the ability of bitcoin to target a vast majority of the global unbanked population.
As bitcoin experts and investors like former blockchain product lead Keonne Rodriguez note, bitcoin enables previously impossible payments with unprecedented security measures, cost-efficiency and reduced settlement times.
While bitcoin is widely accepted as the global digital currency for its ability to settle large sums of money with substantially low fees, it also has high liquidity across various regions, allowing investors, traders and regular users to cash in and out with ease.
Considering the efficiency, high liquidity and stable global exchange rates of bitcoin, Cadignan stated bitcoin acts as a viable alternative to expensive and inefficient banking systems, which many individuals struggle to utilize.
More importantly, as an increasing number of banks and financial institutions begin to implement negative interest rates and impose strict capital controls, it will be more difficult for millennials and the underbanked to obtain access to necessary financial infrastructure.
“Today people forget you can send money from here to China in 10 minutes. Try that with your bank account. It will take weeks,” said Cadignan.
Currently, a relatively large community of startups including Coins, which has three branches in Malaysia, the Philippines sand Thailand branded as Coins.ph, th and my, are focusing on bitcoin remittances and payment services that enables anyone to settle bitcoin transactions without the requirement of various user verification and authentication processes like banks.
Coins.ph for instance has become one of the most popular platforms in the Philippines across all categories, outside the realm of finance and bitcoin, due to its efficient services that allow the underbanked to settle remittances and send bitcoin to cash payments with ease.
Cadignan believes that a fair share of bitcoin and blockchain startups are still struggling to target a realistic user base and failing to create feasible and practical platform which maximizes the potential of bitcoin and the blockchain technology.
Several other panelists at the conference also criticized companies that have been carried away by the blockchain hype, which has led to the emergence and development of blockchain-based applications and platforms that in actuality, cannot be implemented nor integrated into existing financial systems.
As startups like Coins and other bitcoin remittance startups begin to receive mainstream attraction and recognition, Cadignan states that bitcoin will ultimately provide the necessary financial infrastructure to at least 40% of the world’s underbanked population.
If an increasing number of startups, individuals and households begin to migrate to bitcoin and other decentralized financial networks, experts at the conference noted that the financial industry will be revolutionized and undergo a serious structural overhaul.