Bankless: Why are cryptocurrencies so important in developed economies?

Author: Jonah Roberts, Bankless; Translator: Deng Tong, Golden Finance

Cryptocurrency will provide banking services to those who do not have bank accounts. ”

This phrase has long been the battle cry of the cryptocurrency industry, justifying its rapid growth and inclusion in mainstream economics discourse. However, while these words resonate more in developing countries where access to financial services is limited, they do not fully explain why cryptocurrencies are important in the most developed countries.

So why are cryptocurrencies useful where the financial system appears to be basically stable and efficient?

In this article, we will explore how cryptocurrencies can play a role in developed economies - not as a lifeline, but as an option driven by institutional distrust, underbanked populations and the rise of digital native economies.

The established financial landscape in developed economies

In developed economies such as the United States, Canada, and Europe, the financial system appears to be generally functioning well. People enjoy the convenience of banks, reliable payment networks, and government-backed deposit insurance. However, much of this perceived stability is based on public trust, which has been eroded by the financial crisis, inflation concerns, and growing political polarization.

Events such as the collapse of major U.S. banks earlier this year, for example, have heightened skepticism about the reliability of traditional systems, prompting many to look for alternatives.

A 2024 study found that only 63% of Americans said they trusted commercial institutions such as banks, while another 2024 study found that only 31% did. of people are comfortable with the current financial system.This erosion of trust, coupled with the changing political climate, is creating an opportunity for the crypto industry to provide an alternative store of value and exchange system.

This distrust is particularly acute among marginalized communities. For example, Black Americans have historically been underserved by mainstream financial services, and more and more are looking to cryptocurrency as a path to financial independence. Nearly 20% of Black Americans own cryptocurrency, and many see it as a potential tool to narrow the wealth gap and create new pathways for class mobility.

However, this opportunity also comes with significant risks, as many crypto assets are still mostly speculative in nature or exist in a legal grey area.

The Need for Cryptocurrencies in Developing Economies

In contrast, the case for cryptocurrencies in developing economies is more clear-cut. With 1.4 billion people globally without access to traditional banking (according to the World Bank), cryptocurrencies can offer tangible benefits such as:

• Self-custody of currencies in regions with unstable regimes.

• Access to stable currencies such as the US dollar or alternative currencies such as Bitcoin as a hedge against hyperinflation.

• Low-cost, borderless payment networks that bypass traditional banking infrastructure.

• Immutable property rights systems that protect ownership.

These use cases address pressing needs in developing regions, where financial instability and limited banking make cryptocurrencies an attractive alternative. Stories like this one in San Francisco, Colombia, are concrete examples of how crypto payments can help fill the gaps in underdeveloped banking infrastructure in the Global South.

As cryptocurrency founder Ornanda Rangel noted:

“People who say there’s no real utility for crypto or blockchain are because they’re living in a bubble, because they live in countries where the financial system is very well suited to them, and because they haven’t seen what it’s like to own crypto in a broken financial system.”

While these challenges are different than those in developed economies, they illustrate the potential for crypto to address systemic inefficiencies — an opportunity that Global North countries might also explore.

Underbanked Populations in Developed Economies

While developed countries typically have extensive banking systems, there are still millions of people who are unbanked or underbanked. In the United States, approximately 6% of the population lacks access to a bank account. For these people, crypto can offer a way to securely store and transfer funds without relying on banks.

The opportunities that cryptocurrencies offer to underbanked communities also raise questions about systemic change. A 2024 survey found that 48% of Americans believe that financial innovations that rely less on banks and more on automated technology will create a fairer global economy.

If financial power shifts from centralized institutions to decentralized, blockchain-based networks, it could create new opportunities for wealth distribution. But such a shift is a big “if” that hinges on whether cryptocurrencies can deliver on their promise without replicating or exacerbating existing inequalities.

Digital Native Economies: Growing Awareness of Cryptocurrency’s Potential

One of the most interesting applications of cryptocurrency in the Global North is its compatibility with digital and in-game economies. Younger generations, especially “digital natives,” already interact with virtual currencies and assets on online gaming platforms. These digital-first environments highlight the potential of cryptocurrencies as a tool for borderless, real-time value exchange.

A key highlight here is enhanced interoperability. By making wallets more portable, cryptocurrencies enable users to connect their digital goods across the internet in novel ways. For example, putting financial assets on-chain can unlock access to a variety of DeFi applications while navigating between them using one wallet. This user experience is unlike anything the traditional banking and fintech industries can offer.

In addition, as the use of AI in our lives continues to increase, some believe that AI will play a vital role in managing financial interactions. Using cryptocurrency’s permissionless and automated rails, AI can actually interact with the financial system and make decisions with the user’s permission. This creates an opportunity for cryptocurrencies to provide meaningful capabilities that traditional finance simply cannot provide due to its loose and often antiquated structure.

Conclusion

In countries of the Global North, cryptocurrency adoption is becoming less of a necessity and more of a choice. While developing regions may adopt cryptocurrencies out of practical necessity, residents of developed economies may be drawn to cryptocurrencies for ideological reasons — whether it’s a distrust of existing institutions or a deeper understanding of the internet’s native infrastructure. As digital transformation accelerates, countries in the Global North may increasingly embrace cryptocurrencies less out of necessity and more as a conscious choice aligned with a globalized, technology-driven future.

Ten years from now, the question may no longer be whether cryptocurrency matters in the developed world, but how deeply embedded it is in everyday life — from smart contracts managing home loans to decentralized platforms enabling a more globalized financial system.