- Charlie Shrem acknowledges that contrary to popular belief the cryptocurrencies take the financial system from the banks and governments.
- Shrem has a solid fact that regardless of the original motive for the conception of Bitcoin and the cryptocurrencies that came after it.
- Cryptocurrency and digital assets were meant to be globally accessible forms of currency that broke barriers that traditional currency couldn’t.
Founder of BitInstant and the Bitcoin Foundation, Charlie Shrem acknowledges that contrary to popular belief the cryptocurrencies take the financial system from the banks and governments, and give it to the people. A large percentage of the population does not have access to cryptocurrencies.
8% of the US population and 33% of the African-American male population In the USA can’t pass compliance at most #crypto exchanges, custodial wallets, DeFi companies, stablecoin issuers and redeemers. This is because of previous criminal history.
— Charlie Shrem (@CharlieShrem) February 29, 2020
The Bitcoin entrepreneur made a Twitter post where he states that 8% of the entire U.S. population and 33% of the African-American male population in the U.S. fail to meet compliance standards for being a customer at most cryptocurrency exchanges.
Custodial wallet applications, DeFi offerings, and at Stablecoin exchange points; due to past criminal record. The then goes on in a continued thread that this makes it difficult to “bank the unbanked”.
Shrem has a solid fact that regardless of the original motive for the conception of Bitcoin and the cryptocurrencies that came after it, the entire industry has come a far way from the initial goal of decentralization of finance that it stood for.
As the saying goes, “The apple has fallen far from the tree”, Bitcoin and other cryptocurrencies have deviated from its goal to become a decentralized form of currency to some degree.
Don’t get me wrong here, and the perception is not that the cryptocurrency industry is flawed and inherently centralized, but inevitably indeed, some parts of the industry have gotten centralized without recognition.
Cryptocurrency and digital assets were meant to be globally accessible forms of currency that broke barriers that traditional currency couldn’t. It was meant to unify money and form means of payments that were accessible in any corner of the world if you had access to a smartphone with an internet connection.
But the financial system has evolved in such a way that even with cryptocurrencies. The barraging number of regulations has centralized and limited access to cryptocurrencies unexpectedly.
Cryptocurrency exchanges, wallet services, DeFi solutions, etc. as Shrem mentions have become a slave to the same government regulations that crypto has initially been a means against, and has become inaccessible to those whom traditional banking systems have been inaccessible to.
This is also not to say that compliance standards and regulations aren’t necessary. Some things have to be kept in check, and without supervision, there is a high risk of misuse and fraud when it comes to finances.
But the degree of supervision can certainly be more toned down, and the accessibility of cryptocurrencies can be increased. Money and financial services are essential to any economy and the wellness of the society and stripping that from people isn’t the best for the general health of that community.
As much as regulatory standards are needed to keep the cryptocurrency industry in check, leaders need to stand up and realize that there is a widening chasm between the unbanked and banked. That cryptocurrencies aren’t doing as much as we hoped it would in bridging that gap.