CRYPTO AND INCLUSION

Paystand.org’s Strategy to Improve Financial Inclusion – Thanks to Blockchain and Bitcoin

Paystand strategy financial inclusion

Paystand is officially launching Paystand.org, its corporate social responsibility arm that aims to leverage blockchain and Bitcoin to create financial opportunities for vulnerable and underrepresented communities.

During the pilot year in 2023, the company managed to assist 25,000 individuals across 11 different countries and plans to take it to the next level in 2024.

Paystand.org has already provided donations, grants, and technical assistance to various NGOs, including Mi Primer Bitcoin (My First Bitcoin), Hope House, and Digital NEST’s bizzNEST initiative.

The Role of Cryptocurrency in Financial Inclusion

The idea of a more democratic and accessible financial system is inherent in the crypto community's DNA, even though it may not be as prominent in the crypto industry itself.

Cryptocurrencies, with their decentralized model, have the potential to enable new service models such as peer-to-peer lending and protect funds from issues like high inflation and payment delays.

Underserved communities also face challenges such as burdensome service fees, limited access to banking services, and difficulties in obtaining credit.

The Situation in Latin America

According to Paystand.org, Latin America could greatly benefit from Bitcoin. With 70% of the population being unbanked or underbanked, people often turn to informal lenders. By integrating blockchain and Bitcoin technologies with circular economy principles, the potential benefits would be even greater.

Paystand.org's approach is centered around supporting selected organizations that educate about Bitcoin, aiming to create a community of financial services that have a positive impact on society.

Let's look at some examples.

My First Bitcoin (Mi Primer Bitcoin, El Salvador) is one of the initial international projects where Paystand.org provided financial support to develop a platinum-standard curriculum for over 800 classes, benefiting 22,000 individuals. This initiative enables them to use and understand the blockchain technology-based financial system, resulting in more than 1,800 earning bitcoin diplomas.

The Digital Nest organization, headquartered in the Bay Area, is establishing tech training centres for Latinx youth from immigrant and farm working communities. Through assistance and mentorship, over 3,100 young people have received professional technology training and career development, enabling them to participate in career track activities and internships.

Paystand.org's Chief Executive, Alexandra Navarro, stated, «This grassroots approach demonstrates the tangible benefits of bitcoin-based economies to unbanked and underserved populations and improves the circumstances of economically marginalized communities.

Early adopters will educate local populations on how to integrate more capital circulation into community life, how to access and utilize cutting-edge financial technologies, and will coach individuals and businesses on how to use bitcoin most effectively».

Initial funding for Paystand.org's corporate social responsibility work comes from a percentage of Paystand Inc.'s annual revenue, covering operations, donations, and grant-making. The organization has an ambitious goal of giving up to 10% of their profits. Grants are awarded to eligible nonprofit organizations based on criteria established by Paystand.org's board of directors.