“Benja, 22, migrated to Thailand in 2017 from Myanmar. Upon leaving her native country, she shares she did not have a solid financial standing because the bank was too far away. Financial troubles continued upon her new home, where she hoped a new life would begin.”
The story of Benja shows some of the barriers that unbanked and underbanked people everywhere face, and there are more than 1.7 billion people in the world without financial access and security. Most unbanked adults live in rural areas and are migrants. According to UN statistics, 73% of international migrants work abroad. Migration can also be the result of seeking economic opportunities, stability, or life security.
People in Southeast Asia are at risk of being unbanked and migrating.
There are over 56 million migrants in Southeast Asia. Most migrants in Southeast Asia do not have bank accounts as they are regulated by the government. Most of their family members back home do not have bank accounts either. As a result, they are burdened with sending their hard-earned money home while taking risks and being limited to basic financial services.
While migrants are limited to the financial, global remittances seem limitless
There’s been $689 Billion in remittances through various channels in 2020 such as banks and services like Western Union or TransferWise. Underground or Hawala transfers have been estimated at 1.76 trillion dollars. Underground remittances enable the unbaked to send money around where banks are limited and expensive. Nevertheless, both methods of remittance have their own drawbacks. Charges are high, exchange rates are unfair, and the process takes a long time.
Do cryptocurrencies solve the needs of unbanked individuals and remittances?
Even though blockchain technology and cryptocurrency have great potential to provide public financial access to unbanked people. Despite their development, these systems are not able to fulfill basic financial services because they are not scalable, they have proof-of-work fees, they have large currencies fluctuations, and they are difficult to use by most people.
The best blockchain can, however, help us improve our service
Blockchain is the vision of those who thought the current banking system was flawed. As we mentioned above, banks pilfer fees from their customers, cross-border payments could take up to five business days to settle, plus their services may not be accessible to all. Blockchain enables real-time transactions, particularly cross-border transactions. Blockchain provides a new way to send funds and/or log information without requiring a financial intermediary. Therefore, the fee structure will be less complicated. Blockchain also provides very high security.
Asdra utilizes the blockchain to deliver cutting-edge services
With the mission to “Banking the Unbanked.”, Asdra is building a full suite of Asdra Multilayer Protocol to develop and launch applications by combining blockchain technology with the internet to make digital banking accessible to everyone, everywhere, instantly.
Asdra’s multilayers consist of six layers of functionality, including multi-smart contracts for converting fiat into stable tokens, token exchanges, exchange rate oracles, algorithmic management of token stability, international settlement liquidity, and Asdra’s token governance.
In order to facilitate immediate remittances across the globe. Asdra encompasses multiple smart contracts that are part of the entire ecosystem that allows users to use the stable token network of Asdra and make real-time global transfers and enjoy the benefits of blockchain in the most seamless way. Through the use of a smartphone, our customers are able to easily access our financial services regardless of where they are located.