Every century, decade, year and even month has a popular subject that starts out of nowhere and dies out without a trace. The origins of microcredit in its current practical incarnation can be linked to several organizations founded in Bangladesh, especially the Grameen Bank. The Grameen Bank, which is generally considered the first modern microcredit institution, was founded in 1983 by Muhammad Yunus.
Especially eager to try microloans and credits are the Asian countries and the population of unbanked. Studies show that demand for microfinancing and fast loans were high even before Muhammad Yunus first introduced such a concept. Since then, microfinancing organizations and online credit stores have blossomed in our society.
What’s the reason for such success?
Even though microfinancing has the word micro in it, it has enormous merit in growing the financial support of the world’s population.
- Easy to access and break the cycle of poverty even with the smallest amount of borrowed money.
- Empowering to the unbanked, that fear to address the banks for loans.
- Suitable for individuals and SMEs.
- Improvable – it still has room for development.
Microfinancing has a room for development, and blockchain is filling that room. Projects like AssetStream are the current peak of microfinancial development. AssetStream is a blockchain-based P2P microfinancing platform. The description says it all, but there’s more to it.
What does blockchain have to do with microfinancing?
Through the years, blockchain has been meddling with microfinancing and general financial industry, delivering projects that could disrupt international payment systems, traditional currencies and the way we borrow money.
Why was the implementation of blockchain in loaning money inevitable?
- Blockchain makes the borrowing process/transactions faster.
- Blockchain brings back P2P lending in a more trustworthy state.
- Blockchain streamlines cross-border lending, further promoting P2P lending for everyone.
- Blockchain helps establish transparent credit history and user identity.
- Blockchain’s decentralized nature lowers the default rates.
Everything that you’ve read above is combined in AssetStream platform that will help you enter a more suitable environment for your money borrowing needs, or let you lend your extra money and increase your secondary income.
What should we be waiting for in the future?
There’s no way of predicting the future, but we’re sure that we can create enough infrastructure for blockchain and microfinancing to deliver exceptional results. At least that’s what the concept of AssetStream is preaching.
The future holds:
- Solution for the unbanked population
- Better loan conditions for borrowers and a steady monthly income for the lenders
- Legal protection via AssetStream platform
- Faster and cheaper transactions via Stellar protocol
- External forces can’t devalue token
Projects like AssetStream ensure our continuous development. After all, that’s what humanity can do the best.
Follow the trends of the financial world
Blockchain-based P2P platform is something that needs combined strengths from all of us and power/strength starts from the awareness. Educate yourself more about AssetStream project. Visit their website and learn more from the sources they provide to you.
Source URL: https://www.cryptopolitan.com/why-microfinance-has-become-a-buzzword-of-the-decade/