Natural disasters wreck FinTech infrastructure, proving cash is still king
The lessons from recent hurricanes shouldn’t be ignored. It’s time to upgrade internet infrastructure and position people to achieve financial sophistication.
Hurricanes and other natural disasters remind us that our ambitious human efforts to build financial technologies and new forms of digital money can easily be rendered futile. Paying for Uber rides with a contactless card, trading Bitcoin, and using Venmo and Cash App to make purchases can often be a mechanical, effortless exercise. In a disaster zone, however, all of this is vanity. Surviving natural disasters requires citizens to spend money on food, water, and other basic necessities — and doing that without cash on hand is an unexpected and impossible dilemma.
When natural disasters shatter banks and power grids, how do citizens in the storm’s path of destruction transact? How should communities prepare for financial meltdowns precipitated by Mother Nature?
Natural disasters not only cause widespread destruction and trauma, they drive local economies to a dead halt. Based on survey evidence, Pew Research Center concluded that seven in 10 Americans (72%) reported at least one personal experience with extreme weather in 2024. The Federal Emergency Management Agency (FEMA) also reported that 81 major disaster declarations have already been made in 2024 so far, which is double the number that was recorded two years ago.
Go to Source
Author: Agnes Gambill
