Major cryptocurrency exchange, Coinbase has launched a campaign talking up how cryptocurrencies can be used to overcome racial inequalities in the financial space; to mark the Black History Month.
On 13th Feb, the exchange published a blog post with results of a recent survey it conducted in the U.K and the U.S. The essence of the exchanges survey was based on the narrative; blockchain and digital currencies as trust-less technologies would be racially more viable than the traditional financial system.
According to the data collected by Coinbase, out of the 5,126 respondents, only one out of three black-Americans think the financial system is equally accessible by people of all ethnicity. In addition, two times the number of black Americans indicated that they have been racially discriminated against within the traditional financial system; 48% of black Americans as compared to 24% of whites.
Nevertheless, the negativity in the traditional financial sector translates into increased interest in digital currencies. 70% of Black Americans indicated that they would like to learn more about digital currencies. On the other hand, only 42% of White Americans would be interested in.
Moreover, Coinbase cites the words of Vernon Johnson; who is the co-founder and the chief technical officer of Yup blockchain startup. Vernon, in support of crypto being an equitable financial instrument, said:
“Many cryptocurrency transactions are pseudonymous and don’t require the disclosure of your real-world identity, which may ease some of the apprehensions about racial discrimination in Finance 1.0. It becomes much harder to perceive racial identity in a world where people’s real identities are obfuscated.”
Coinbase Tightens K.Y.C Rules
Furthermore, Johnson noted that accessing financial services using digital currencies, relies on one’s digital reputation and transaction history. This eliminates the need for face-to-face meetings and or disclosure of identity.
However, due to the ever-changing Know Your Customer rules on a country basis; this advantage crypto has over traditional financial system; might come to an end. Coinbase crypto exchange demands photo Identification for registration. There might be no much difference between the traditional finance system and crypto after all.