Bitcoin: A Lifeline for Refugees Fleeing Crisis
A recent study by the Digital Assets Research Institute (DARI) reveals that Bitcoin is increasingly becoming a crucial tool for refugees seeking safety and financial stability. The study estimates that at least 329,000 refugees have already used Bitcoin to escape dangerous areas and preserve their savings.
With over 117 million people worldwide forcibly displaced from their homes, the report suggests that Bitcoin adoption among refugees is poised for significant growth. Projections indicate that as many as 7.5 million refugees could be using Bitcoin by 2035.
“Refugees who carry Bitcoin can rebuild their lives more quickly, alleviating the burden on host countries and humanitarian aid organizations,” the study’s authors stated.
Bitcoin’s Role in Crisis Situations
The ongoing conflict between Russia and Ukraine highlights Bitcoin’s utility in crisis situations. With traditional banking systems facing limitations, such as ATM withdrawal limits and long queues, Bitcoin emerged as a viable alternative. One example cited in the study is that of a Ukrainian man, identified as ‘Fadey,’ who successfully transported approximately R$10,000 worth of Bitcoin, representing 40% of his savings, as he fled to Poland with his girlfriend.
Bitcoin: Beyond Wall Street
While Bitcoin is often associated with ETFs and large corporations, its fundamental purpose as a global currency remains relevant. The DARI study emphasizes this point, stating:
“Our analysis indicates that approximately 329,000 refugees around the world — a population equivalent to that of a medium-sized city — have preserved, transported, or rebuilt their wealth using Bitcoin when fleeing their countries of origin.”
Refugees can convert Bitcoin into fiat currencies along their journeys to cover travel expenses and essential needs. This finding provides concrete evidence that Bitcoin’s use as a “flight currency” is not merely theoretical but is already a significant reality.
Bitcoin vs. Stablecoins
Although stablecoins could potentially serve a similar purpose, the study notes a lack of verified cases of refugees using them. The report concludes that Bitcoin’s liquidity and decentralization currently give it an advantage as a popular tool for those fleeing authoritarian regimes and collapsing economies.
Accessibility and Ease of Use
Bitcoin’s accessibility is a key factor in its appeal to refugees. Access to Bitcoin and other cryptocurrencies can be secured through a 12-word seed phrase, allowing individuals to carry their savings on a piece of paper or even memorize it. Furthermore, only a mobile phone with internet access is needed to spend the Bitcoin, which is readily available in most countries.
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