Excluded’ by Banks? Velvet Capital Founder Says Crypto Is the Answer

In today’s financial world, millions of people remain excluded from basic banking services. Whether due to strict regulations, high transaction fees, bureaucratic inefficiencies, or centralized control, traditional banking has failed to provide financial inclusion for all.

The founder of Velvet Capital believes that cryptocurrency and decentralized finance (DeFi) offer a revolutionary alternative, allowing individuals and businesses to access financial services without relying on banks. With the rise of blockchain technology, a new financial system is emerging—one that is transparent, accessible, and free from the limitations imposed by centralized institutions.

Why Are So Many People Excluded from Banking?

Despite massive technological advancements, billions still lack access to traditional financial systems. Several factors contribute to this exclusion:

1️⃣ Strict Banking Regulations and Documentation Requirements

To open a bank account, individuals often need to provide extensive documentation, including government-issued identification, proof of residence, and employment details. Many people, especially in developing countries, do not possess these documents and are therefore denied access to banking.

2️⃣ High Transaction Costs and Hidden Fees

Banks generate huge profits by charging customers high fees on nearly every transaction. Some of the biggest issues include:
✅ Expensive Remittances – Migrant workers sending money home often lose a large percentage due to transfer fees.
✅ Withdrawal and Transfer Fees – Banks charge for moving money, even between accounts.
✅ Account Maintenance Charges – Many banks charge customers simply for holding an account, making it difficult for low-income individuals to save money.

3️⃣ Lack of Access to Loans and Credit

Traditional banks prioritize lending to wealthy individuals and large corporations. Small businesses, entrepreneurs, and individuals with limited financial history often struggle to secure loans. Even if they qualify, they face high interest rates and long approval processes.

4️⃣ Account Freezing and Unjustified Restrictions

Many people have faced situations where their bank accounts were frozen or restricted without notice. This can happen due to:
❌ Regulatory Issues – Banks complying with sudden rule changes.
❌ Suspicious Activity Flags – Even legitimate transactions may be blocked.
❌ Arbitrary Bank Decisions – In some cases, financial institutions lock accounts for political or legal reasons.

These challenges highlight the urgent need for an alternative financial system—one that is inclusive, efficient, and does not discriminate based on documentation, location, or financial status.

The Crypto and DeFi Revolution: A Game Changer

The founder of Velvet Capital argues that cryptocurrency and decentralized finance (DeFi) provide a real solution to these problems. Here’s how:

🔹 Decentralization: No Middlemen, No Restrictions

Unlike traditional banks that control financial access, cryptocurrencies operate on blockchain networks, meaning that:
✅ There are no central authorities controlling transactions.
✅ Funds are accessible 24/7, with no risk of bank-imposed restrictions.
✅ Users can store and manage their wealth independently, without relying on banks.

🔹 Borderless, Fast, and Affordable Transactions

With crypto, anyone can send and receive money across borders instantly. Unlike SWIFT transfers that take days and involve high fees, blockchain transactions are:
✔️ Instant or Near-Instant – No waiting for approvals.
✔️ Low-Cost – Many crypto transactions have fees as low as a few cents.
✔️ Globally Accessible – No restrictions based on nationality or banking status.

This makes crypto especially beneficial for international remittances, where traditional banks take a large cut of migrant workers' hard-earned money.

🔹 Decentralized Lending and Borrowing: No Need for Credit Scores

Traditional banks require borrowers to meet strict criteria, including credit history, income verification, and collateral. DeFi platforms, however, allow individuals to:
💰 Access loans without credit checks – Borrow against their crypto assets.
💰 Lend money and earn interest – Act as their own “bank.”
💰 Use Smart Contracts for Secure Transactions – No middlemen, just transparent, automated agreements.

🔹 Complete Financial Freedom

With crypto, users have full control over their money. Banks cannot freeze accounts, block transactions, or impose arbitrary restrictions. This is crucial for people living in politically unstable regions, where governments sometimes seize assets without justification.

Velvet Capital’s Vision: Bridging Traditional Finance and DeFi

Velvet Capital is leading the way in democratizing finance, providing secure, decentralized solutions for individuals and businesses. Their platform focuses on:

✅ Non-Custodial Digital Asset Management – Users control their funds at all times.
✅ Decentralized Investment Solutions – Offering financial services without banks as middlemen.
✅ User-Friendly DeFi Tools – Making crypto accessible to both beginners and experienced users.

By leveraging blockchain technology, Velvet Capital ensures financial services are available to everyone, regardless of where they live or how much money they have.

The Future of Finance: Will Banks Adapt or Disappear?

As DeFi continues to grow, traditional banks face increasing pressure to evolve. The financial world is changing, and institutions must decide whether to adapt or risk becoming obsolete. Here’s what could happen:

🔹 Banks May Adopt Blockchain Technology – To compete, many banks might integrate crypto-friendly services, offering their customers blockchain-based transactions.

🔹 More People Will Turn to DeFi – With fewer restrictions and better financial freedom, decentralized finance will continue to attract users frustrated with traditional banking.

🔹 A Hybrid Financial System May Emerge – A combination of traditional banking and DeFi, where banks provide infrastructure while individuals have more control over their assets.

Is Crypto the Ultimate Banking Solution?

While crypto is not perfect, it solves many of the biggest issues in traditional banking. However, challenges remain, such as:

❗ Regulatory Uncertainty – Governments worldwide are still figuring out how to regulate crypto.
❗ Security Risks – Users must protect themselves from hacking and scams.
❗ Adoption Barriers – Many people are still unfamiliar with DeFi and how it works.

Despite these challenges, the potential of crypto and DeFi to provide financial inclusion is undeniable. The founder of Velvet Capital believes that as awareness and adoption grow, more people will move toward decentralized solutions, reducing dependence on banks.

The Choice is Yours: Traditional Banking or Financial Freedom?

As the world moves toward decentralization, individuals and businesses have a choice:
✅ Continue relying on banks with their fees, restrictions, and bureaucracy
✅ Or embrace a financial future where YOU are in control

Cryptocurrency and DeFi are not just trends—they represent a fundamental shift in the way people store, manage, and transfer wealth. With platforms like Velvet Capital leading the way, the dream of a global, inclusive, and decentralized financial system is becoming a reality.