Empowering Women: The Transformative Impact Of Bitcoin

(MENAFN- crypto Breaking)

A recent discussion with a friend in Kenya revealed the significant challenges women face when attempting to participate in local elections. One of the primary hurdles is the process of establishing a bank account. To begin, women must obtain various identification documents, a task often complicated by cultural norms in certain communities, where men may oppose women acquiring their own ID. Additionally, many women reside far from registration sites, have limited literacy skills that hinder form completion, and face financial barriers concerning travel and application costs. Many also lack essential documents, such as birth certificates, do not possess proof of residence if living with a male relative, and often endure processing delays, resulting in multiple trips to distant registration points.

The absence of a bank account, coupled with the inability to manage and access funds autonomously, significantly undermines true freedom. In numerous countries, this financial dependency serves as a barrier to accessing government services, obtaining formal employment, registering to vote, and establishing businesses. Furthermore, a bank account is a crucial requirement for running in local elections and participating in governance. This reality restricts the fundamental human rights of many women, particularly in developing regions, thanks to an outdated financial system that fails to meet 21st-century needs.

In Pakistan, only 13% of women have formal bank accounts, compared to 34% of men. The procedure for women to establish a bank account is often more complicated, frequently requiring additional identification and approval from male relatives. The landscape is slightly better in South Asia overall, where merely 37% of women have bank accounts , versus 55% of men. In the Middle East, the situation shows some improvement, with 45.5% of women having bank accounts compared to 59.6% of men. However, in sub-Saharan Africa, 37% of women hold a bank account in contrast to 48% of men.

Even for women who successfully open bank accounts in developing nations, they often face bias in their creditworthiness compared to men. In India, for instance, women secure credit amounting to just 27% of their deposits, while men receive credit equal to 52% of theirs. Furthermore, female entrepreneurs in India access only 5.2% of the total credit allocated to enterprises by Indian public sector banks, despite demonstrating better repayment rates than their male counterparts. This perceived lack of creditworthiness is tied to the fact that women possess fewer assets that can serve as collateral for loans, thereby reinforcing the banking gap.

In light of these challenges, it is evident that there is a pressing need for an alternative to the outdated financial system. This traditional framework often mirrors the biases of its operators, making it challenging for women to attain financial equality without a significant social transformation in perspectives towards women. While such a change is necessary, it is unlikely to occur swiftly. In certain regions, like Afghanistan and Iran, the situation seems to be deteriorating instead.

Nonetheless, the widespread adoption of Bitcoin in developing nations has the potential to radically transform the financial landscape. This gender-neutral digital currency does not obligate users to seek approval from family members and is free from local biases and cultural obstacles that limit women's roles in society and business. Bitcoin represents a pivotal opportunity to empower women while also benefiting society as a whole, enabling half of the population to manage, accumulate, and transact money without cultural or geographic constraints.

Many female entrepreneurs in rural areas face the necessity of traveling to distant bank branches, which can be costly and unsafe. Bitcoin removes this obstacle entirely. With only a mobile device and internet access, women can receive payments, save funds, and engage in global trade from the security of their own homes. Bitcoin 's decentralized nature also supports women in informal economies. Street vendors, craftsmen, and domestic workers can accept digital payments without requiring a bank account or government-issued identification. This feature is groundbreaking in areas where obtaining official documentation entails navigating complex systems and often necessitates male oversight.

Furthermore, Bitcoin 's privacy features offer vital protection for women in precarious circumstances. In cultures where financial abuse is prevalent, the ability to control funds discreetly can be transformative. Women can build savings safely, shielding them from potential discovery or confiscation, forming crucial safety nets for themselves and their children. The remittance sphere highlights another critical application. Numerous women in developing countries rely on financial support from family members abroad. Traditional remittance channels typically demand high fees and require recipients to travel to fixed locations during limited hours. Conversely, Bitcoin facilitates almost instantaneous transactions at significantly lower costs, allowing women to access funds directly and securely.

The essence of Bitcoin 's innovative framework is self-custody, which allows individuals exclusive control over their wealth without involving third parties. This concept preserves privacy while ensuring wealth is accessible anywhere and at any time. When combined with a supply-limited currency that holds value and is resistant to hyperinflation, the transformative potential of Bitcoin is undeniable.

Bitcoin could revolutionize finance similarly to how the internet transformed information sharing, fostering equality in access and usage free from immutable characteristics. As financial hurdles disappear, the societal norms that reinforce these barriers will begin to diminish. Self-custody empowers individuals, counteracting the power of outdated financial institutions that aim to maintain the status quo. By providing fiscal autonomy to women who have long fought for equality, self-custody creates a brighter future for everyone.

This is a guest contribution by Ghaffar Hussain. The views expressed are entirely those of the author and do not necessarily reflect the stance of BTC Inc or Bitcoin Magazine.

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