Cryptocurrencies are a fairly recent model of transactions. With a cumulative market capitalization of $267 billion as of May 2020 from as low as $18billion in 2016, their adoption has seen tremendous growth.
Despite this stellar performance, widespread adoption of cryptocurrencies globally has been hindered by their low accessibility and practical usability. Developing countries, where huge portions of the population lack access to the internet, experience the lowest rates of adoption.
A project powered by Apollo fintech, the platform offers a solution to this problem by enabling the mass onboarding of people globally. A key target is the unbanked population and those in the most remote regions.
Traditional financial services such as banks are usually as far-reaching as the number of branches built. Since the sparsely populated rural areas lack a sufficient population and businesses to sustain a branch, vast areas remain untapped. About 1.7 billion adults are left unbanked worldwide, calling for a more innovative approach. Banks, thus have a huge accessibility problem.
Access to cryptocurrencies should be global, at least in theory. The key requirement is internet access, something that’s also lacking in many developing nations. Another limiting factor as to why this is not the case is the otherwise tedious and demanding process of trade, off-putting to even those with a stable internet connection. A lack of acceptance of cryptocurrencies in many outlets added to the online requirement and the long process creates a usability problem
Knox world pay breaches these two key problems, accessibility, and usability by merging the digital and physical worlds in a very innovative way.
The platform is currently creating a huge network of agents worldwide, with the key target being the most unbanked areas. An agent may be anyone willing to sign up, a form of job creation in its own right. As another solution to the ever-changing demands for financial services, the agents can recruit sub-agents under them to further their reach. It becomes possible for one who was previously unbanked to be within hundreds of meters from an agent or a sub-agent.
Agents are tasked with recruiting new users through the opening of accounts. Users can now deposit via the agents whenever conducive and also buy their credits.
Being able to access one’s crypto assets is one step, but it wouldn’t help if using these assets is another uphill task. Knox World Pay has several innovative solutions to this.
To begin with, users can withdraw their deposits from agents in fiat currency. This process is enabled by the coins being backed by a fiat currency hence interchangeability. The limit of having to find cryptocurrency accepting outlets to enable the usage of one’s digital assets is eliminated.
Also, the transfer of assets from one user to another doesn’t require an internet connection. With Knox World Pay’s SMS-based service, all a user has to do is send a text from any mobile device to transact. The text messaging service is directly linked to Apollo blockchain’s servers to effect the transaction. The need to have an internet connection to use one’s digital assets is also eliminated.
Moreover, the service enables the wrapping of Bitcoin and Ethereum, with efforts in progress to add many other cryptocurrencies. Such a feature boosts not just the sustainability but also the usability of these cryptocurrencies thanks to the fiat-backed nature of the Apollo currency.
Faster and Cheaper Transactions
The ingeniousness of Knox World Pay’s solution to financial inclusion is such that it also breaks the speed and cost barriers. The platform becomes an all-round service that is not only more accessible and usable but also faster and cheaper than most other models.
Faster Transaction Speeds
People in poor remote areas could spend hours traveling to banks just to transfer funds. Transferring of funds with the platform on the other hand takes just about 1-2 seconds, being done remotely from any mobile phone. How this is possible requires a slight look into the host blockchain.
Apollo is the fastest blockchain currently thanks to a technology called database-level sharding. Such a process decreases the data backlog on its blocks, lessening the slowdown they cause. So once an SMS is sent to its servers, these faster speeds enable a fast transaction confirmation process along its chain.
Cheaper Transaction Costs
The more common traditional methods of international funds transfer are via trusted third parties such as banks and money exchanges. These third parties’ services come at quite a steep cost, making the transfer of low volumes of financial assets very uneconomical.
Cryptocurrencies don’t require any third party to facilitate any transfers. As a result, the charges are comparably very low. Setting up for the common methods of cryptocurrency transfer is very tedious which limits widespread absorption as a cheaper option. In addition to a stable internet connection, one needs to research more on exchange platforms as well as on crypto wallets to avoid cybercrime susceptibility. The most secure of these wallets need to be bought, an added cost.
By eliminating all these requirements, Knox World Pay allows for a mass-adoption of cryptocurrencies and thus the exploitation of cheaper transaction costs.
Due to an undefined physical barrier, cryptocurrencies offer a possible solution to the financial inclusion to the unbanked globally. Issues such as accessibility and usability amongst others have otherwise been preventing this from becoming a reality.
Knox World Pay offers a solid solution to the two main barriers. As a result, the truly widespread adoption of cryptocurrencies globally as a solution to financial inclusion is made possible. The platform also adds speed and lower costs as other added beneficial features to its adoption. With the implementation of such a program, higher rates of global financial inclusion could become a reality.