Can Crypto Address The Issue Of Income Inequality Globally?

• Binance conducted a survey recently on the use of crypto.
• 76% of the participants believed that crypto can address income inequality globally.

Binance Survey participants cite crypto’s impact on increased investment value, additional income opportunities, improved financial control, and faster cross-border transactions.

A survey conducted by Binance indicates that close to 50% of its users depend on crypto as a means to generate additional income. The latest observation was part of its new campaign, “Crypto is better with Binance.”

Based on data from a survey with a sample size of 1,172 participants from November 15, 2023, to December 6, 2023, on the Binance Survey platform across Asia & Pacific, the Middle East, Europe, Africa, and Latin American users, the findings revealed that nearly half – 45% – identified earning additional income as their main purpose for using crypto.

Following closely were savings, with 19%, and mitigating inflation, with 9%. A significant portion of respondents, nearly 36%, highlighted that the primary incentive for using crypto for savings was to attain financial security and independence.

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Binance Survey Findings

The results of the survey revealed that 19% of respondents surveyed expressed high fees to be a major hurdle when dealing with legacy financial systems and services. 

Another 14% of respondents said that slow transaction times were also one of the largest challenges with such infrastructures.

The majority of participants – 76% – expressed the view that crypto can contribute to reducing income inequality and financial disparities in society.

Of those surveyed who primarily use crypto to generate additional income, 23% expressed the intention of using it as their main source of income. 

Another 23% use it to save towards home, while 21% allocate it to invest in alternative digital assets.

More than one-third – 36% – of survey participants utilize cryptocurrency for weekly transactions. 

Among them, a majority – 58% – employ crypto for online purchases, covering a range of items such as goods, services, and digital products. 

Additionally, 12% use it for international transactions and remittances, while another 12% utilize crypto for in-store purchases.

A significant portion of respondents, totaling 59%, have been involved in cryptocurrency for a duration ranging from 1 to 5 years. 

Another 14% have a more extensive experience of over five years, while 12% are relatively new to crypto, having engaged with it for less than six months.

36% of users employ cryptocurrency as a means to save money, seeking financial security and independence. Additionally, 16% utilize it to earn higher interest on their savings, and 14% use crypto for saving towards retirement.

Participants also revealed the positive effects of crypto on their lives, with 20% noting an increase in the value of their investment portfolios, 18% citing opportunities for additional income through trading or staking, 15% enjoying greater access to financial services, 14% experiencing improved financial control, and 12% benefiting from faster and more cost-effective cross-border transactions.

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Crypto Adoption

According to Chainalysis’ Global Crypto Adoption Index, India is the biggest crypto market in the Central & Southern Asia and Oceania (CSAO) region and leads the world in grassroots adoption.

The index indicated a decline in global grassroots cryptocurrency activity following the 2022 FTX collapse. 

However, lower-middle-income countries, as classified by the World Bank based on wealth, have exhibited the strongest rebound in grassroots crypto adoption over the last year.

Nigeria and Vietnam captured the second and the third spots respectively on the blockchain analytical firm’s Global Crypto Adoption Index.