Bitcoin around the world · Explainer

Bitcoin for the
unbanked.

READ3 min·UPDATED·APPLIES TOAny country·LEVELBeginner
For unbanked or underbanked populations worldwide. Sources are listed at the bottom of the page; check their dates before acting.

Roughly 1.3 billion adults worldwide lack access to basic banking. In its base form, Bitcoin requires no bank account, credit history, or government ID.

Viewpoint. Besides explaining the topic, this page makes the site’s case on money and Bitcoin. The facts are sourced; that case is the site’s view. How pages are labeled.

This page covers Bitcoin for the unbanked: what it takes to hold and buy it without a bank, and remittance costs. For currency-collapse case studies, see Bitcoin In Hyperinflation; for a non-US reader's playbook, see Global Debasement.

Short answer

You need no bank account, no credit score, and no government permission to hold or receive Bitcoin. A phone and an internet connection is enough to participate in the Bitcoin network. For roughly 1.3 billion adults without bank accounts worldwide, this is not a minor feature.

On this page
  1. Who the banking system excludes
  2. What Bitcoin requires
  3. Remittances
  4. Currency collapse context
  5. For immigrants and newcomers

Who the banking system excludes

IN THE UNITED STATES

Approximately 5.6 million US households are unbanked as of the most recent FDICFederal Deposit Insurance Corporation (FDIC)The US agency that insures bank deposits if a bank fails. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. Since January 1, 1934, no depositor has lost a penny of insured funds as a result of a failure. Bank money market deposit accounts are covered; stocks, bonds, mutual funds (money market funds too) and crypto are not, even when bought at an insured bank. survey ×DON'T TRUST, VERIFYClaim: The FDIC estimates millions of US households are unbanked.Verify at: FDIC National Survey of Unbanked and Underbanked Households ↗ Source 1 in the list belowThe FDIC publishes this survey approximately every two years. Figures update with each release.. Common reasons:

  • Cannot meet minimum balance requirements.
  • Don't trust banks.
  • Privacy concerns.
  • Past banking problems (ChexSystems record).
  • Undocumented status.
GLOBALLY

Roughly 1.3 billion adults have no bank account, according to the World Bank's Findex survey ×DON'T TRUST, VERIFYClaim: Approximately 1.3 billion adults globally are unbanked.Verify at: World Bank Global Findex ↗ Source 2 in the list belowThe Global Findex database is updated every three years. The unbanked figure has been trending down but remains in the billions..

What Bitcoin requires

TO RECEIVE AND HOLD BITCOIN
  • A device with internet access (a basic smartphone works).
  • A Bitcoin wallet app (free to download).
  • No bank account required.
  • No credit check.
  • No minimum balance.
  • No government ID in its base, non-custodial form.
TO BUY BITCOIN WITHOUT A BANK
  • Bitcoin ATMs (accept cash; fees vary and are often high).
  • Peer-to-peer platforms connecting buyers and sellers directly.
  • In-person purchase from a trusted seller.

Availability and regulation vary significantly by country. Check local rules before using cash-based channels.

Two panels: a bank's shut doors at the top of long stone steps, and a basic smartphone lying on a wooden crate.
To hold and receive Bitcoin, a basic smartphone and an internet connection are enough: no bank account, no credit check, no minimum balance and, in non-custodial form, no government ID.

Remittances

Sending money internationally through traditional channels costs an average of roughly 6 percent of the amount sent ×DON'T TRUST, VERIFYClaim: Global average remittance fees are approximately 6 percent of the amount sent.Verify at: World Bank Remittance Prices Worldwide ↗ Source 3 in the list belowThe World Bank publishes quarterly data on remittance costs by corridor.. A worker sending $300 home typically loses roughly $18 in fees.

Bitcoin Lightning NetworkLightning NetworkA faster lane built on top of Bitcoin. Lets two people pay each other instantly, for tiny fees, by keeping a running tab between them off Bitcoin's main public ledger.Full definition transactions cost a fraction of a percent of the amount.

The global remittance market is roughly $800 billion per year ×DON'T TRUST, VERIFYClaim: Global remittance flows are approximately $800 billion annually.Verify at: World Bank migration and remittances ↗ Source 4 in the list belowThe World Bank publishes annual remittance flow estimates, trending upward over time.. The fee savings potential at scale is significant.

Currency collapse context

Countries that have experienced severe currency debasement in the last two decades include Venezuela, Zimbabwe, Argentina, Turkey, and Lebanon ×DON'T TRUST, VERIFYClaim: Venezuela, Zimbabwe, Argentina, Turkey, and Lebanon have experienced severe currency debasement in the 21st century.Verify at: IMF World Economic Outlook: Inflation ↗ Source 5 in the list belowIMF inflation data shows sustained multi-hundred to multi-thousand percent annual inflation rates in these countries across various periods..

In each case, Bitcoin adoption increased as the local currency collapsed. People who held their savings in Bitcoin rather than the local currency preserved more of their purchasing powerPurchasing powerWhat money can actually buy, not the number on the bill or in the account. Inflation shrinks it over time: by the BLS consumer price index, it takes more than $8 today to buy what $1 bought in 1971. Same dollar, much less buying ability.Full definition. Those who held only local currency saw their savings effectively wiped out.

This is not a speculative use case. It has already happened, in multiple countries, repeatedly. For a US reader, the relevance depends on how durable you think reserve-currency status is.

For immigrants and newcomers

If you're new to the United States, Bitcoin is often the most immediately accessible financial tool available:

  • No credit history required to access.
  • No ChexSystems banking-history record required.
  • No Social Security number required to hold Bitcoin in a self-custody wallet.

Compare this to opening a Roth IRAIndividual Retirement Account (IRA)A retirement account with tax advantages and eligibility rules. Traditional IRA contributions may be deductible; taxable withdrawals generally enter income. Roth contributions use after-tax money, and qualified Roth withdrawals are tax-free.Full definition (needs an SSN or ITIN and taxable compensation) or a US brokerage account (needs full identity verification). Bitcoin requires a device and internet. For recent arrivals building financial history in a new country, that accessibility matters.

Where to go from here

Do next

How to Buy Bitcoin Safely

Walks through opening an account and moving coins to self-custody.

Read next

Bitcoin In Hyperinflation

See country-by-country cases where this access actually mattered.

Explore further

Sources

Verify badges in the text link to these sources. Figures, rates and rules change: check each source’s date before acting on it.

  1. FDIC National Survey of Unbanked and Underbanked Households · fdic.gov ↩
  2. World Bank Global Findex · worldbank.org ↩
  3. World Bank Remittance Prices Worldwide · remittanceprices.worldbank.org ↩
  4. World Bank migration and remittances · worldbank.org ↩
  5. IMF World Economic Outlook: Inflation · imf.org ↩

Last updated . Not financial advice. Disclosures · How pages are reviewed

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