Migrants face numerous social and economic challenges before and after migration depending on the factors influencing their decision to migrate and the context of their country (countries) of arrival.
The decision to migrate may be due to various factors including economic hardship; political instability, social violence, or war; lack of access to education, healthcare, and other needs; and/or environmental factors such as climate change, natural disasters, or environmental degradation. For many individuals and families, the decision to migrate entails a significant financial loss as property and other assets must often be abandoned. Following migration, a wide range of intersecting social, psychological, and economic challenges are common.
Economic difficulties: Migrants may face challenges finding stable employment or earning a living wage, leading to financial difficulties and stress.
Social and cultural isolation: Migrants may struggle to integrate into their country of arrival and experience feelings of loneliness, isolation, and homesickness. Migrants may also face challenges adapting to a new culture, including differences in customs, values, and lifestyles. Migrants often face prejudice and hostility from the local population, which can lead to social exclusion, harassment, and even violence.
Legal and documentation issues: Migrants may have difficulty obtaining legal documentation, which can limit their access to services, employment, and social benefits.
Health issues: Migrants may face challenges accessing healthcare, particularly if they lack legal documentation or insurance. Migrants may experience trauma due to their migration journey, including violence, abuse, or separation from loved ones, which can lead to mental health issues such as depression, anxiety, and post-traumatic stress disorder (PTSD).
Education challenges: Migrant children may struggle to access education or face barriers to integration, such as language barriers or lack of recognition of their qualifications.
Bitcoin has the potential to significantly improve the lives of immigrants and refugees, as well as the lives of family members who continue to reside in their country of origin. There are several ways that Bitcoin can serve as an important tool to support migrants prior to emigration, and provide new opportunities and improve overall wellbeing following emigration.
Improving Financial Stability and Resilience
Bitcoin's decentralized, digital nature makes it resistant to seizure or confiscation by governments or other entities, providing a layer of protection for individuals facing financial uncertainty or persecution. This financial resilience can be especially important for refugees fleeing conflict zones or political instability and for other migrants. Whereas fiat currencies (government issued currencies), land, housing and other forms of property cannot easily be transported, Bitcoin can be transported across borders with as little friction as remembering a 12 word seed phrase (a sequence of short words that act like a password).
For immigrants and refugees, financial stability and resilience are crucial in adapting to a new country and environment. By providing a secure and censorship-resistant store of value, Bitcoin can support migrants before and after the process of migration. By extension, this has innumerable benefits for communities and countries welcoming migrants.
Financial Inclusion and Accessibility
One of the most significant barriers faced by immigrants and refugees is limited access to traditional financial services. Many individuals arrive in a new country with limited or no capital or financial documentation (assets, credit history, etc). This makes it difficult to open a bank account, obtain loans, or access other financial products. Bitcoin, as a decentralized and borderless currency, can help bridge this gap by providing a more accessible and inclusive financial system.
A study conducted by the Fletcher School at Tufts University found that refugees and migrants are more likely to have access to mobile phones than bank accounts. With the increasing availability of smartphones and internet connectivity, Bitcoin can be easily accessed and used by these populations, enabling them to send and receive funds, make purchases, and save money without relying on traditional financial institutions.
Additionally, Bitcoin can facilitate the creation of new businesses and entrepreneurial ventures. Immigrants and refugees often face difficulties in obtaining loans from banks due to a lack of credit history or collateral. Bitcoin-based microloans and crowdfunding platforms like Geyser can provide an alternative source of funding for these individuals and families, empowering them to start or grow a new business or organization and to create economic opportunities for themselves and their communities.
Strengthening Families and communities through Remittances
Bitcoin enables secure, low-cost, almost instant, borderless financial transactions. Bitcoin can help individuals send remittances back to their home countries at a lower cost than traditional money transfer services and with significantly reduced barriers. According to the World Bank, global remittances totaled approximately $860 billion in 2023, with a large portion coming from immigrants sending money to support their families back home. These remittances often entail high transaction fees at financial intermediaries as well as many physical and socio-economic barriers on both ends of the transaction (eg, the need to access a physical location to both send and receive a transfer, physical safety issues for remittance recipients, etc).
By adopting Bitcoin as a tool, organizations working in immigrant and refugee services can help break down financial barriers, foster economic inclusion, and empower individuals to take control of their financial future. Immigrant and refugee service organizations can play a pivotal role in promoting Bitcoin adoption and empowering migrants/refugees. This includes organizations working at different parts of the migrant journey (humanitarian aid organizations; organizations in refugee and settlement camps; immigrant and refugee settlement organizations; and others). By integrating Bitcoin into their services, organizations can:
The decentralized, global, digital nature of Bitcoin also provides advocates and organizations unique opportunities to collaborate and act on a global scale. This includes receiving donations, disbursing support, and collaborating with partners across borders and other divides.
Lastly, the role of Bitcoin as a long-term savings technology also provides organizations working with migrants at different steps of the migrant journey with a new tool for organizational stability and growth. Organizations should consider adding Bitcoin as a treasury reserve asset for future financial growth. This offers the potential to achieve greater financial stability and grow service capacity in future.
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