Only a small fraction of the global population is investing in the financial markets and assets that help build and preserve personal wealth. The latest infographic done in partnership with Visual Capitalist looks at traditional investing trends at a global scale, and how the emergence of decentralized finance can help create more financial access, opportunity, and equality.
This infographic is the third in a series of data-driven stories done in partnership with Visual Capitalist. The first graphic in the series examined the flaws of the current financial system, while the second graphic looked at the potential of decentralized finance to address some of those flaws.
A simple case for global financial inclusion
Investing in financial markets is a basic tool to build personal wealth. Here are a couple of basic reasons:
Hedge: Equities markets can be used as a hedge against the inflation of fiat currencies.
Compounding: Cash doesn’t compound, and actually loses value over time.
Protect wealth: Diversifying across asset classes helps protect wealth during tough times.
Current barriers to entry for most of the world’s new investors interested in equity markets and other valuable financial assets include geographic location (there is a correlation between where in the world people are located and the ability to access financial markets), financial literacy/complexity, unstable local markets, and the cost of investing through traditional means.
Some of those problems can be addressed by better financial technology, like Bitcoin.
How decentralized investing creates more financial access
One of the main attributes of decentralized tools Bitcoin and other cryptocurrency protocols is that they can be used as programmable money. These attributes remove some of the barriers to entry mentioned above (like geographic limitations and the cost of making investments).
Abra is using the programmable features of cryptocurrencies to build a global investment app that will help democratize access to financial services, like investing.
Like Bitcoin itself, crypto-collateralized investments into things like traditional equities can happen via fractional or micro-investing, which opens the possibility of investing in some of the world’s most valuable assets to more people.
Check out the full story from Visual Capitalist:
Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.
Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, pymnts.com reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.
How Abra Protects Your Funds
Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.
Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.
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