The banking excluded: how Play to Earn games could end the poverty of a billion people
Play-to-Earn (P2E) games have brought unbanked people closer to the world of banking than they have ever been.
Could the Axie Infinity game assist in lifting a billion people out of poverty and ensuring their long-term financial security? When it comes to attracting more individuals to the decentralized finance (DeFi) area, this is a common question. To be honest, Axie Infinity could be a fantastic place to start for financial security while also offering certain critical performance indicators.
Many citizens in underdeveloped or impoverished countries have limited or no access to banks or traditional financial institutions.
Exclusions from banks
Around 1.7 billion adults in the world do not have a bank account. More than a billion of those people without access to banks have mobile phones. They require this critical technology in order to achieve financial stability, planning, and investing. They do not, however, have the necessary network or knowledge to get started.
However, there are chances within DeFi that are assisting with this shift. Banks only work with persons who have money and resources. DeFi, on the other hand, provides us with a potential solution for helping individuals in poverty earn, save, invest, and borrow. Play to Earn (P2E) games are one of the most popular options in the DeFi world. To put it another way, these are games that allow players to earn money.
P2E games are a means of educating and engaging people.
P2E games have approximately 10 million users and are one of the areas of Web 3.0 that users are most enthusiastic about. The open economy network was founded on Ethereum and is now used by a large number of people to make money and interact with other developers.
It remains to be seen whether P2E is actually a sustainable ecosystem, but it does provide an opportunity for individuals in less sophisticated communities to learn about crypto and DeFi.
Many Play to Earn games begin with the fundamentals of blockchain transactions, such as how to build a smart-wallet, track your conventional currency exits, use BinancePMP, and conduct simple transactions. As communities coalesce around gaming guilds, individual players learn how to invest and develop a new source of income while stepping into the door that DeFi opens.
New DeFi technologies will help users manage their money, preserve their savings, and connect them to rewards in the form of services.
This is the equivalent of easily accessible ripe fruit.
Playing Play to Earn games generates income flow while also providing a secure location to store, access, and protect your funds – no bank necessary. Whether you reside in Cuba, the Philippines, or northern Canada, this is true.
We have an opportunity to experiment, educate, and emancipate these folks if we can start leading people who have come through P2E to a better grasp of DeFi and then allow them to put that money into savings apps.
Learning from TradFi (the traditional finance sector)
The Grameen Bank, based in Bangladesh, is a microfinance institution that assists poor individuals in discovering their savings and investing potential. The bank had 9.44 million members as of late fall, almost all of them were women. Grameen Bank has 2,568 branches in 81,678 villages across Bangladesh, covering the vast majority of the country.
The bank has made a name for itself by giving a high annual percentage yield (APY) to customers who pay a dollar per month for five to 10 years. In five years, this bank’s deposits had climbed by 300 percent.
This example reveals the opportunity created by crypto in less developed locations, but with the added benefits of removing the banking middleman and reducing deposit times and fees that continue to be a problem in microfinance.
It is possible to go further with optimistic DeFi rewards
RaaS, (Reward as a Service) represents a more entrenched layer for participation in DeFi in the developing world.
Although capitalistic in nature, RaaS incentivizes participants with token rewards to settle on-chain disputes through the data verification mechanism. It can help contribute to the proper functioning of DeFi applications or products while financially rewarding participants.
RaaS is a kind of underlying functionality to provide a flow of rewards based on certain key performance indicators or behavioral criteria. Someone could create DeFi apps powered by this feature to encourage people to behave more in favor of their own self-interest.
People may be coming for the games (while making some money), and we have a chance to keep them for a deeper connection with DeFi, with RaaS being one of the keys to making that happen.
There is progress and progress being made, but there are even more opportunities to create new solutions to the enormous problem of impoverished and unbanked people around the world.