Wealth inequality is growing globally

Inequitable value distribution and lack of fair compensation in traditional economy accentuates wealth inequalities.

Balancing the encouragement of wealth generation with the broader well-being of society is a challenging but crucial task for policymakers around the world...

As the world becomes more interconnected, wealth often accumulates among individuals or companies who can effectively harness resources and opportunities. The rapid progression of technology, while beneficial to many, can also create disparities in wealth accumulation. Furthermore, the influence of dominant financial institutions can impact wealth distribution patterns, potentially favoring established entities.

These combined dynamics can lead to pronounced wealth inequalities.

The potential benefit of blockchain technology and cryptocurrencies to address wealth inequality is the real world:

1. Decentralized Finance (DeFi): This emerging sector allows people to lend, borrow, or invest without traditional intermediaries like banks. By giving more people access to financial tools and investment opportunities, DeFi has the potential to distribute wealth more equitably.

2. Financial Inclusion: Cryptocurrencies have granted numerous individuals in developing countries access to the global economy. Where traditional banking systems are absent or limited, these digital currencies offer a tangible means to save securely, participate in financial transactions, and even access loans.

3. Wealth Preservation: for new generations, cryptocurrencies have emerged as a reliable store of value, safeguarding individuals' hard-earned savings.

4. Enhanced Transparency and Trust: The immutable and transparent nature of blockchain can help in reducing fraud and corruption, especially in public funds management. By ensuring funds are used as intended, resources can be more equitably distributed.

5. Global Employment Opportunities: Cryptocurrencies eliminate many barriers associated with international transactions. This can enable individuals from any part of the world to offer their services and get paid fairly, leading to a more equitable distribution of global income.

6. Affordable Remittances: Traditional banks often charge high fees for international money transfers, making remittances expensive. Cryptocurrencies have proven to substantially reduce these costs, ensuring more money directly reaches recipients.