Why Crypto Matters in Developed Economies

“Crypto will bank the unbanked.”

This line has long been a rallying cry for the crypto industry, justifying its rapid growth and inclusion in mainstream economics discourses. However, while these words resonate more in the developing world, where access to financial services is limited, they don’t fully capture why crypto matters in the most developed countries.

So, why does crypto have a purpose in places where financial systems appear largely stable and efficient? 

In this piece, we’ll explore how crypto is carving out its role in developed economies—not as a lifeline, but as a choice driven by institutional distrust, underbanked populations, and the rise of digital-native economies. 👇

The Established Financial Landscape in Developed Economies

In developed economies like the U.S., Canada, and Europe, financial systems generally seem to function well. People enjoy the convenience of banks, reliable payment networks, and government-backed insurance on deposits. However, this perceived stability is largely built on public trust, which has been steadily eroding due to financial crises, inflation fears, and increasing political polarization.

For instance, events like the collapse of major regional banks in the U.S. earlier this year have amplified doubts about the reliability of traditional systems, leaving many searching for alternatives.

A 2024 study showed that only 63% of Americans say they trust business institutions, like banks, while another 2024 study showed only 31% reported being satisfied with the current financial system. This erosion of trust, coupled with a changing political climate, is creating an opening for the crypto industry to present an alternative system of value storage and exchange. 

This distrust is particularly acute among marginalized communities. Black Americans, for example, have historically been underserved by mainstream financial services, and a growing number see crypto as an avenue for financial independence. With nearly 20% of Black Americans owning cryptocurrency, many view it as a potential tool for closing the wealth gap and creating a new path for class mobility.

However, this opportunity comes with significant risks, as many crypto assets are still mostly speculative in nature, or exist in legal gray areas.

The Need for Crypto in Developing Economies

In contrast, the case for crypto in the developing world is more clear-cut. With 1.4 billion people globally lacking access to traditional banking (according to the World Bank), crypto can offer tangible benefits like:

• Self-custody of currency in regions with unstable regimes.
• Access to stable currencies like USD, or alternative ones like BTC, which can act as hedges against hyperinflation.
• Low-cost, borderless payment networks that bypass traditional banking infrastructure.
• Immutable property rights systems that protect ownership.

These use cases address immediate needs in developing regions, where financial instability and limited access to banking make crypto an appealing alternative. Stories like this community’s in San Francisco, Columbia, have showcased specifically how crypto payments are helping fill in for underdeveloped banking infrastructure in the global south.

As crypto-founder Ornanda Rangel mentions in the video below: 

“People who say crypto or that blockchain does not have real utility is because they live in a bubble, because they live in countries where the financial system it works perfectly for them, and because they have not seen how it is to have a broken financial system.” 

While these challenges differ from those in developed economies, they illustrate crypto’s potential to address systemic inefficiencies—an opportunity the Global North might also explore.

The Underbanked Populations in Developed Economies

While developed nations typically have extensive banking systems, millions of people still remain unbanked or underbanked. In the U.S., around 6% of the population lacks access to a bank account. For these individuals, crypto could offer a way to store and transfer funds securely without relying on banks.

The opportunity crypto presents for underbanked communities also raises questions about systemic change. A 2024 survey found that 48% of Americans believe that financial innovations that rely less on banks and more on automated technology will create a more equitable, global economy.

If financial power shifts from centralized institutions to decentralized, blockchain-based networks, it could create new wealth distribution opportunities. But this shift is a big "if" and depends on whether crypto can deliver on its promises without replicating or exacerbating existing inequalities.

Digitally-Native Economies: A Growing Appreciation for Crypto’s Potential

One of the most intriguing applications of crypto in the Global North is its compatibility with digital and in-game economies. Younger generations, especially those who are “digital natives,” already interact with virtual currencies and assets in online gaming platforms. These digital-first environments highlight crypto’s potential as a tool for borderless, real-time value exchange.

A key highlight here is increased interoperability. By making wallets more portable, crypto enables users to connect their digital goods across the internet in novel ways. Bringing financial assets onchain unlocks access to a wide range of DeFi applications, for example, all while using one wallet to navigate between them. This user experience is unlike anything the traditional banking and fintech sector has been able to offer.

Additionally, with increasing AI integrations occurring across our lives, there are some who believe AI will play a vital role in managing financial interactions. Using crypto’s permissionless and automated rails, AI can actually interact with the financial system and make decisions when permissioned by users to do so. This creates an opportunity for crypto to offer meaningful features that traditional finance, with its permissioned and often archaic structures, simply cannot.

Adoption by Choice

In the Global North, crypto adoption is less about necessity and more about choice. While developing regions may adopt crypto out of practical need, residents of developed economies may be drawn to it for ideological reasons—be it distrust in existing institutions or a closer understanding of internet-native infrastructure. As digital transformation accelerates, the Global North could increasingly embrace crypto not out of necessity but as a conscious choice aligned with a globalized, technology-driven future.

In a decade, the question may not be whether crypto matters in developed countries but how deeply it’s embedded in the fabric of everyday life—from smart contracts managing home loans to decentralized platforms enabling a more global financial system.