I was recently having a conversation with a friend in Kenya who described how difficult it was for women in that country to stand in local elections due to the complexity of setting up a bank account. The first challenge is to obtain identification documents, which is a process that is complicated by cultural attitudes in certain communities in which the men may object to women seeking independent documents. Many women also live far from registration centres, have limited literacy to complete the forms and may not be able to afford the journey and the documentation fees. Furthermore, many women lack birth certificates, do not have proof of residence if they live with a male relative and processing delays are common which means multiple visits to a faraway registration centre are often required.
Without a bank account, or the ability to independently store, build and access money, one is not truly free. In many countries around the world, it is a prerequisite to accessing government services, formal employment, registering to vote and setting up a business. Crucially, it is also required for standing in local elections and, thus, being involved in local governance. This means many women, especially in developing nations, are having their basic human rights restricted by a failing legacy financial system that is not fit for purpose in the 21st century.
In Pakistan only 13% of women have a formal bank account compared to 34% of men. Furthermore, the process of opening a bank account for a woman is more complex, in many cases it requires more ID and evidence of permission from a male relative. The picture is not much better across South Asia more broadly, with only 37% of women having bank accounts compared to 55% of men. Things are slightly better in the Middle East, where only 45.5% of women have bank accounts compared to 59.6% of men. Whilst in sub-Saharan Africa, 37% of women have a bank account compared to 48% of men.
Even when women do have bank accounts in many developing nations they are less likely to be regarded as credit worthy compared to men. For example, in India women receive credit equivalent to only 27% of the deposits they contribute, whereas men receive credit equal to 52% of their deposits. Additionally, female entrepreneurs in India receive only 5.2% of the outstanding credit granted to enterprises by Indian public sector banks, even though they have higher repayment rates than men. This perceived lack of credit-worthiness is linked to the fact that women own less property, and other hard assets, that can be used as collateral for loans. This, again, is linked to lower rates of banking.
Given the above, it is fair to conclude that the world is desperate for an alternative to the legacy financial system. This system, it seems, merely reflects the biases and prejudices of the people who run it and so women cannot achieve financial equality without a global social revolution that reconfigures views of women. Whilst such a revolution is desirable, it is highly unlikely to happen in a short space of time and in some places, such as Afghanistan and Iran, the direction of travel seems to be in the wrong direction.
However, the mass adoption of Bitcoin in the developing world could completely transform the economic landscape. A gender blind digital currency that does not require users to ask for permission from family members, and is not tainted by local prejudices and cultural practices that restrict the role of women in society and business, is a game-changer whose time has come. Bitcoin could not only empower women, but uplift society in general since it will give 50% of the population an equal ability to store, build and transact money without any cultural or geographic limitations.
Female entrepreneurs who live in rural areas are often required to visit bank branches in person which can be miles away and potentially unsafe and expensive to access. Bitcoin eliminates this barrier entirely. With just a mobile phone and internet connection, women can receive payments, save money, and participate in global commerce – all from the safety of their homes. Bitcoin’s borderless nature benefits women in the informal economy too. Street vendors, artisans, and domestic workers can accept payments digitally without the need for a bank account or government identification. This capability is revolutionary in regions where obtaining official documentation requires male guardianship or navigating complex bureaucratic systems.
Bitcoin’s privacy features also provide crucial protection for women in vulnerable situations. In societies where financial abuse is common, the ability to maintain private control over funds can be life-changing. Women can build savings without fear of discovery or confiscation, creating essential safety nets for themselves and their children. The remittance market demonstrates another vital application. Many women in developing countries depend on money sent from family members working abroad. Traditional remittance services often charge excessive fees and require recipients to travel to specific locations during business hours. Bitcoin enables near-instant transfers at a fraction of the cost, allowing women to receive funds directly and securely.
Central to Bitcoin’s revolutionary nature is the concept of self-custody, which means individuals have direct access to their wealth, without any third party involvement. Self-custody also means privacy is maintained and the wealth is accessible from anywhere in the world at any time. When this global accessibility is combined with a form of money that is limited in supply, hence holds value and is resistant to hyperinflation, the transformational power of Bitcoin cannot be understated.
Bitcoin can do for finance what the internet did for information, creating a level playing field in which immutable characteristics play no role in access or usage. As such, when barriers to money are removed, the social conventions that were used to augment these barriers also begin to wither. Self-custody means we take power away from large and decrepit financial institutions that seek to maintain a stagnant status quo. Self-custody means power to the people and power to the women who have struggled to achieve financial autonomy and equality. Self-custody means a better world for all.
This is a guest post by Ghaffar Hussain. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
