Education about cryptocurrencies can be the key to promoting financial freedom and accepting cryptocurrencies everywhere – if we do it right.
In October 2021, it was estimated that about 15% of the world's Bitcoin (BTC) supply is in circulation in Latin America. However, according to a recent report published by crypto Literacy, 99% of respondents in Brazil and Mexico have failed in a basic review of cryptocurrency understanding. The adoption of cryptocurrencies is well underway throughout the region – even on the rise – but people still lack a basic understanding of the cryptocurrency's technology and its use cases.
When this ignorance exists in a developing market context where applicability makes real sense, then it becomes a problem and a serious barrier.
People who don't know about cryptocurrencies risk missing out on assets that could help them combat the rapidly rising Inflation worldwide in the wake of the Covid pandemic. As well as decentralized apps (DApps) that give many individuals without a bank access to financial services from their mobile devices. In countries where remittances (foreign exchange sent back to that country by someone of ethnic origin with a country but residing abroad) are a major aspect of the economy, cryptocurrencies offer a faster and cheaper alternative to sending money across borders.
So how can we help people access this life-changing technology? It's education.
Open up the adoption of cryptocurrencies in a mainstream way through education
Education has the potential to address three main obstacles that prevent the adoption of cryptocurrencies in a mainstream way: an understanding of finance, trust, and security.
- Financial literacy
Lack of understanding of finance, is not only a barrier to the adoption of cryptocurrencies but also a barrier to the adoption of traditional banking. Across Latin America and the Caribbean, nearly 50% of the population is not using banks as of August 2021, so they lack access to bank accounts or other financial services. In addition to living away from financial institutions, a lack of trust in institutions is also one reason why they don't have a bank account. Where there is little trust, that place is often ignorant.
- Trust
In Mexico it's not hard to come across stories of parents advising their (often grown) children to exchange their savings for dollars and store them in a safe instead of trusting them to give those incomes to a financial institution. By building financial knowledge around popular financial concepts and blockchain-related concepts, we can inspire people to have more confidence in financial institutions as a pillar to promote the adoption of cryptocurrencies in a mainstream way.
- Safety
The trust that education brings is more than the trust that people here place in financial institutions. It also makes you believe that when people don't trust certain organizations or financial instruments they're interacting with, those individuals are more likely to make risky financial decisions. And they know that too. Education can act as a form of safety net, teaching individuals what regulations apply and are not in place to protect them, so that they can understand financial services that are in line with those regulatory frameworks.
Educate where you need to be educated the most.
Cryptocurrencies have the potential to change the world and those who know it best will have a huge advantage. Knowing the power that education creates, it is important that cryptocurrencies strategically target the customer base to maintain inherent inequality. Remote and underserved communities, as well as those with little access to traditional education, should be at the forefront of those with access to blockchain education.
For remote communities, we must create educational opportunities through mobile devices so that individuals can access learning materials from their phones without having to travel long distances to the nearest city.
For those with lower levels of education, we must consider multimedia educational materials that help minimize the need for literacy without the need for advanced grassroots knowledge.
For women, mentoring programs and role models are key to creating welcome and inclusion that is clearly designed to bring women into the cryptocurrency world.
For groups from all over the world, it is advisable to create educational resources in the local language – Spanish and Portuguese in Latin America – to ensure as many audiences as accessible.
For all involved, we must refrain from placing financial barriers to education – believing in the long-term benefits of a growing user base through free and accessible education.
Blockchain technology and cryptocurrencies are built to disrupt the power structure of traditional finance. They have the potential to drastically improve free finance in Latin America. So it's no surprise that cryptocurrency adoption is on the rise. However, with the adoption of such a series of new technologies, we face a new risk of leaving the most vulnerable social groups behind. Education can solve this. Education can build trust in this rapidly evolving technology and impart knowledge that allows individuals to interact safely with these new tools. Education can establish a new world order of financial justice for all.
