CryptoURANUS Economics: Unbanked: Defined in CryptoCurrency

CryptoCurrencies


Saturday, August 11, 2018

Unbanked: Defined in CryptoCurrency

Unbanked: Defined:


Many reasons people may be unbanked including:

  • Unbanked are adults who do not or cannot use banks to store their money.
  • After experiencing a banking crisis, they may have a distrust of the banking system.
  • Some individuals don’t have enough money to meet the minimum requirements of a bank.
  • Illegal European Immigrants may not have the paperwork needed to open a bank account.
  • A small group of the unbanked are criminals who are trying to avoid the attention of law enforcement.
  • Some cryptocurrencies aim to help the unbanked by allowing them to store, use, and transfer their money with very few requirements.

























What is Unbanked really?


DEFINITION of 'Unbanked':

  • "Unbanked" is a slang term regards those who do not use banks or banking institutions in any capacity. 
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  • Unbanked persons generally pay for things in cash or else purchase money orders
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  • Unbanked persons also typically do not have insurance, pensions or any other type of professional money-related services. 
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  • They may take advantage of alternative financial services, such as check-cashing and payday lending, if such services are available to them.



BREAKING DOWN 'Unbanked':

  • Estimated, 10 million American households are unbanked. 
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  • Nationwide, about 7.7 percent of households are unbanked.
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  • The rate of unbanked citizens vary greatly from one state to the next.
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  • Mississippi has the highest rate of unbanked, at 16.4 percent. 
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  • Rates of the unbanked in some U.S. cities and counties exceed 20 percent. 
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  • These places include Detroit; Newark, N.J.; Cameron County, Texas; Laredo, Texas; Hialeah, Fla.; Miami; and Starr County, Texas. Unbanked rates exceed 40 percent in Cleveland; Savannah, Ga.; Nashville; and Atlanta. 
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  • Half of the unbanked had a bank account previously, but are now choosing to conduct their financial lives without such exchanges do to interest rates and legal actions brought against them.  


Why Persons Become Unbanked:

  • Most unbanked are white, native-born Americans: but many immigrants, legal and illegal, are also unbanked.
  • People can choose to be unbanked for many reasons. Criminals avoid using financial institutions because law enforcement officials can track their actions in their accounts. 
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  • Survived of global the Great Depression have deep distrust for financial institutions.
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  • Great depression survivors do not trust, nor use private financial institutionalized banks. 
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  • Recent immigrants who experienced banking crises in their countries of origin are the same consensus. 
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  • Extremely poor individuals may also have no need for the banking system.
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  • Those below and slightly above the poverty-line survive bearly day-to-day with little to no money for food and poor to no housing inthe United States.
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  • Many citizens living in poverty find being unable maintaining minimum bank-account balances, to afford bank-account fees, or arrange for vehicle-transportation to and from bank branches during banking hours.

Initiatives to Help the Unbanked:


  • State and federal level politicians have attempted to help the unbanked gain financial literacy, benefit from banking services, and the banks fail them 93% time.. 
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  • Former California Gov. Arnold Schwarzenegger’s, (AKA: Terminator), Bank on California Initiative, and the FDIC’s Money Smart program. 
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  • The U.S. Treasury Department’s Section 326 regulations, which allow banks and credit unions to accept identification issued by foreign governments, seeks to help undocumented aliens become banked and to collect social-security benifits. 
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  • The U.S. Treasury Department makes federal payments to unbanked federal benefits recipients using a MasterCard prepaid debit card.





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