Cryptocurrency and the Unbanked/Underbanked in the World

Gemini Trust Company, LLC (Gemini) is a cryptocurrency exchange and custodian that allows customers to buy, sell, and store more than 30 cryptocurrencies like bitcoin. Gemini asked the Columbia SIPA Capstone team to draft a white paper to explore the hurdles to global adoption of cryptocurrency as means of value exchange. Specifically, the report examined whether the crypto community can achieve its goal of financial inclusion by reaching and benefitting the unbanked/underbanked people, who do not make use of traditional financial services, including banks. The Capstone team began by providing an overview of key developments in the cryptocurrency space as well as a summary of the present-day regulatory landscape in the United States. Following that, the team evaluated three country-specific use cases for unbanked and underbanked populations in Mexico, India, and Indonesia. Throughout the semester, the team conducted research and completed a total of 73 expert interviews from a variety of countries and fields to leverage their personal and professional networks to consider the future of cryptocurrency. Finally, the team provided a series of recommendations for private entities and regulators seeking to operate in this space and potentially pursue some or all of these strategies.