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Cryptocurrency has long been touted as a way to provide financial services to those without access to traditional banking. While this message resonates strongly in developing countries, where access to financial systems is limited, it doesn’t fully explain why cryptocurrency matters in highly developed economies with stable financial systems.
So why is cryptocurrency relevant in places where the banking system is functioning smoothly and efficiently?
In this article, we’ll explore how cryptocurrency plays a role in developed economies—not as a lifeline, but as a choice driven by distrust in institutions, underserved populations, and the rise of a digital-first economy.
The Established Financial Landscape in Developed Economies
In countries like the U.S., Canada, and much of Europe, the financial systems generally function well. People have access to banks, reliable payment networks, and government-backed deposit insurance. However, much of this stability relies on public trust, which has been eroding over time due to financial crises, inflation fears, and increasing political polarization.
For instance, the recent failures of major regional banks in the U.S. raised doubts about the reliability of traditional systems, leading many to look for alternatives. A 2024 study found that only 63% of Americans trust banks and other financial institutions, and another survey found that just 31% are satisfied with the current financial system. This growing distrust, combined with a shifting political landscape, is creating an opportunity for the cryptocurrency industry to offer alternative systems for storing and exchanging value.
The Role of Crypto in Marginalized Communities
This mistrust is especially pronounced in marginalized communities. For example, Black Americans have historically had limited access to mainstream financial services, and many are turning to cryptocurrency as a path toward financial independence. Nearly 20% of Black Americans own cryptocurrency, seeing it as a potential tool for reducing wealth inequality and creating new avenues for social mobility.
However, these opportunities come with significant risks, as many cryptocurrencies remain speculative and exist in a legal gray area.
Cryptocurrency in Developing Economies
In contrast, the need for cryptocurrency in developing economies is clearer. According to the World Bank, around 1.4 billion people globally lack access to traditional banking. In these regions, cryptocurrency can offer tangible benefits, such as:
- Self-custody of currency in politically unstable regions.
- Access to stable currencies like the U.S. dollar or Bitcoin as a hedge against hyperinflation.
- Low-cost, borderless payment systems that bypass traditional banking infrastructure.
- Immutable property rights through blockchain technology.
These use cases address urgent needs in regions with unstable financial systems and limited banking access, making cryptocurrency an attractive alternative. As crypto founder Ornanda Rangel points out:
“People who say cryptocurrency or blockchain has no real utility are living in a bubble. They live in countries with financial systems that work for them and haven’t experienced what it’s like to need crypto in a broken system.”
While the challenges in developing countries differ from those in developed nations, they highlight the potential for cryptocurrency to solve inefficiencies in financial systems—something that even the wealthier northern hemisphere may begin to explore.
The Unbanked in Developed Economies
Despite having widespread banking systems, millions of people in developed countries still lack access to banking services. In the U.S., about 6% of the population is unbanked. For these individuals, cryptocurrency can provide a secure way to store and transfer funds without relying on banks.
Cryptocurrency offers a chance to rethink the financial system, especially for underserved communities. A 2024 survey found that 48% of Americans believe that reducing reliance on banks and embracing more automated financial technologies could lead to a fairer global economy.
If financial power shifts from centralized institutions to decentralized, blockchain-based networks, it could create new opportunities for wealth distribution. However, this transformation is a big “if,” and it depends on whether cryptocurrency can fulfill its promises without exacerbating existing inequalities.
The Rise of Digital-First Economies
One of the most exciting applications of cryptocurrency in developed economies is its compatibility with digital and in-game economies. The younger generation, especially “digital natives,” is already interacting with virtual currencies and assets in online gaming environments. These digital-first settings highlight cryptocurrency’s potential as a borderless, real-time tool for value exchange.
A key advantage here is enhanced interoperability. By making wallets more portable, cryptocurrencies allow users to connect their digital assets in novel ways. For example, putting financial assets on the blockchain can unlock access to decentralized finance (DeFi) apps, while using a single wallet to navigate them all. This user experience is unlike anything the traditional banking or fintech industries can offer.
Additionally, as artificial intelligence (AI) continues to evolve, some believe AI could play a critical role in managing financial interactions. With cryptocurrency’s permissionless and automated nature, AI could interact with the financial system and make decisions with user consent. This creates an opportunity for crypto to offer meaningful functionality that traditional finance simply cannot, due to its outdated structures.
In developed countries, the adoption of cryptocurrency is no longer about necessity but about choice. While people in developing regions may turn to cryptocurrency out of necessity, residents in developed nations are often drawn to it for ideological reasons—whether it’s distrust of existing institutions or a deeper understanding of internet-native infrastructure. As digital transformation accelerates, countries in the Global North are likely to increasingly embrace cryptocurrency—not out of necessity, but as a conscious choice aligned with a technology-driven, globalized future.
In ten years, the question may no longer be whether cryptocurrency will matter in developed nations, but rather how deeply it will be embedded in daily life—from managing home loans with smart contracts to enabling a more globalized financial system through decentralized platforms.