Coinbase says Crypto could solve racial inequality in Finance

Written by: Ali Raza
March 11, 2020
  • Crypto-based transactions are more receptive of racial equality compared to traditional financial services.
  • Crypto transactions are dependent on financial history and not based on personal details.
  • Nature of crypto transactions can significantly reduce the racial inequality level in the financial sector

As part of its celebration of Black History, the Crypto Exchange giant Coinbase is launching an advertising campaign to show that cryptocurrencies can be used as a tool for curbing the racial injustice in the financial sector.

The exchange announced this in a recent blog post, showing results of surveys carried out in the UK and the US.

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The main message in the survey is to stress the notion that cryptocurrencies and blockchain could offer more equality in the financial sector than traditional financial services. The company said the nature of cryptocurrencies makes them more friendly in preaching equality among all races within the financial sector.

More black Americans more interested in crypto

Coinbase gathered the data from a select sample of 5,126 respondents. From the data, one out of three Black Americans feel that crypto financial systems provide equal accessibility to all races and ethnic groups.

Besides, about 48% of Black Americans in the survey said they have been negatively impacted by their gender or race within the conventional financial system. But only about 24% of the White Americans who took part in the survey said so. This negative experience could lead to increased acceptance of cryptocurrencies.

Additionally, 42% of White Americans said they want to know more about cryptocurrencies, while about 70% of the Black American respondents were in the affirmative.

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Cryptocurrency transactions obfuscate the real identity

Chief technical officer and co-founder of Blockchain startup Yup, Vernon Johnson, argued that many crypto transactions are more appealing to those who feel they are racially being treated unfairly in the financial sector.

He pointed out that these transactions are pseudonymous in nature because they don’t require much information before transactions are carried out.

Unlike traditional financial services, cryptocurrency transactions allow traders and investors to conceal their ethnic or racial differences while trading because identity disclosure is not necessary.

According to him, it’s more difficult to perceive racial identity in a financial community where real identities are not disclosed. The nature of cryptocurrency transactions gives no room for racial discrimination, unlike the traditional financial services, he said.

Access to crypto transactions is based on transaction history

Johnson also added that access to financial services in the cryptocurrency market is dependent on transaction history and the reputation of the individuals. Here, there is no need for one-on-one meetings or identity disclosure.

Documents or details about the person are not needed. As long as the trader has a good crypto trading history, it’s enough to carry all sorts of cryptocurrency transactions in the crypto industry.

According to Coinbase, this special quality and feature of blockchain and cryptocurrency will help reduce the issue of racial discrimination in the financial sector.