In a notable development, Paystand, the blockchain-enabled commercial payments platform, has officially unveiled Paystand.org as its corporate social responsibility (CSR) arm. This initiative represents Paystand’s commitment to leveraging blockchain and emerging bitcoin circular economies to generate financial opportunities within vulnerable and underrepresented communities. The platform has already made contributions to various non-governmental organizations (NGOs), including Mi Primer Bitcoin, Hope House, and Digital NEST’s bizzNEST initiative.
Empowering Vulnerable Communities:
Paystand.org aligns with Paystand’s broader mission to decentralize the financial system, steering businesses toward a more equitable economy. The initiative specifically addresses pressing challenges faced by emerging economies globally, such as financial inclusion hurdles, high inflation rates, limited banking access, exorbitant service fees, prolonged payment delays involving numerous intermediaries, and difficulties in securing credit and capital.
Financial Inclusion Challenges:
Underserved communities grapple with issues like unfair charges as high as 6.8% for workers sending money back home, coupled with extended waiting periods for their families to receive the funds. This underscores a clear exploitation of the less fortunate by the existing financial system. For instance, Latin America faces significant financial inclusion gaps, where an estimated 70% of the population is unbanked or underbanked, compelling reliance on informal lenders and personal networks for credit.
Bitcoin Circular Economies as a Solution:
In regions like El Salvador, where a bitcoin circular economy is emerging, over 2 million underbanked citizens utilize bitcoin. The adoption of bitcoin has led to a 30% increase in tourism, attracting foreign investment, and facilitating over $120 million in cross-border remittances last year, avoiding fees for overseas workers. Similar trends are observed in other countries with growing bitcoin economies, showcasing a faster adoption rate of digital currency compared to the traditional banking system.
Blockchain and Bitcoin for Inclusive Opportunities:
The integration of blockchain and Bitcoin technologies, coupled with circular economy principles, presents a transformative opportunity for Latin America’s 160 million youth, the majority of which constitute small and medium-sized enterprises (SMEs). This integration also benefits investors directing $100 billion in annual finance flows, fostering more inclusive opportunities for the underbanked in the region.
Holistic Approach of Paystand.org:
To create a more inclusive financial landscape and drive economic growth, Paystand.org adopts a holistic approach. It supports selected organizations dedicated to educating and promoting the use of Bitcoin and blockchain technology in emerging and underrepresented communities. The initiative provides funding, mentoring, expertise, basic financial literacy education, and technology training to empower these organizations to build sustainable and regenerative economic practices.
CEO Perspective:
Jeremy Almond, CEO of Paystand, highlighted the transformative potential of Bitcoin and blockchain in democratizing an unjust financial system. He emphasized the significance of Paystand.org as a change agent for financial inclusion among the underrepresented, showcasing a dual approach that combines commercial finance impact with philanthropy.
Expansion and Future Endeavors:
Paystand.org is actively seeking to expand its philanthropic impact by adding corporations, foundations, and financial institutions as founding partners. Starting February 15, the platform will accept new grantee applications for 2024, aiming to support organizations and projects aligned with its philanthropic mission.
Conclusion: Catalyzing Change Through Philanthropy:
In conclusion, the launch of Paystand.org signifies a strategic move by Paystand to contribute meaningfully to financial inclusion and economic empowerment through blockchain philanthropy. The platform’s dual approach, addressing both commercial finance and philanthropy, exemplifies a model for emerging tech companies to approach stewardship. As Paystand.org evolves, it holds the potential to serve as a catalyst for positive change, fostering equitable opportunities in the financial landscape for the underbanked and vulnerable communities.