The influx of cash—largely in the form of charitable donations—resources local economies, helping local businesses and communities get back on their feet.
The financial impact of hurricanes and other natural disasters should be taken just as seriously as the emotional and physical consequences. Not even if experts say it will be inevitable as digital payments and digital currencies grow in popularity. Traditional financial payment systems and fintech digital infrastructures are mocked everyday availability which stopped working in an instant. Seven in ten Americans (72%) reported at least one personal experience with an extreme weather event in 2024. Solving this without cash is an unexpected and impossible dilemma.
Natural disasters not only cause widespread destruction and trauma but also bring local economies to a standstill. As disaster relief organizations explain, cash offers the most flexible solution to meet urgent needs. Experience is the best teacher, and Hurricane Helene taught three clear lessons that all Americans should consider. The lessons of Hurricane Helene should not be ignored: it is time to improve Internet infrastructure, boost people’s financial preparedness, and remember that in times of disaster, cash is still king.
The original article was published in English on the Cointelegraph website.
Mobile phones could not be used to send money to relatives.
It was not possible to make purchases on computers. Banks providing instant payment services were closed or flooded. Financial well-being means being able to meet basic living needs, manage day-to-day finances, withstand financial shocks, and plan for the future.
Educating people about the importance of saving cash is just as crucial as helping a hurricane victim access financial assistance, file an insurance claim, and take the first steps toward reconstructing their financial future. As well as ensuring that local ATMs are properly charged and operational so that cash distribution remains continuous.
Second, let’s improve outdated internet capabilities. Hurricanes and other natural disasters demonstrate us that efforts to create fintech and new digital currencies can easily become futile.
Paying for Uber rides with a contactless card, trading bitcoins, and using Venmo and Cash App to make purchases are often mechanical, effortless activities. Third, support meaningful financial education. A recent disaster—Hurricane Helene—made landfall and flooded remote parts of the Appalachian Mountains. Local governments and utilities need to invest in innovations like Starlink, which provides internet from space via a satellite network of satellites orbiting the Earth. However, during a disaster, all of this is irrelevant. To survive, you need money for food, water, and other basic needs. The Federal Emergency Management Agency (FEMA) also reported that 81 major disasters have been reported so far in 2024.
This is double the number registered two years ago. Hurricane Helene
The regional target of Hurricane Helene’s worst impact—the Appalachian region—is particularly significant as rural households have fragmented access to broadband services compared to the national average.
This greatly limits access to online financial and banking services, especially during extreme weather conditions. Experienced investors should think ahead and consider how they can hedge their investments in case they are unable to close or modify their positions during a sudden market downturn due to a loss of internet connection.
With proper preparation, local communities can mitigate the risk of financial challenges associated with emergencies when existing financial and fintech infrastructures fail. Moving Internet infrastructure into space reduces the risk of damage from catastrophic storms, which often incapacitate cable networks, wires, and optical fibers as they pass through the troposphere.
Although space orbits are not completely safe either—they are sometimes threatened by space debris, dust, and space weather phenomena—satellite-based connectivity can provide a serious lifeline in dangerous conditions. In doing so, it caused “devastation on a biblical scale” and record-breaking deaths and damage, the likes of which the region had not seen since the historic flood of 1916.
The aftermath of the Category 4 giant left millions without internet, cell phone service, and power across the United States. Now is the time to develop Internet infrastructure and help people achieve financial maturity. Three Lessons
First, let’s preserve the future of cash.
Physical cash should never be abolished. People would do well to keep some cash savings on hand.
The lesson from recent natural disasters is that we should not ignore their consequences. In such situations, there is only one way to make payments: cash. No digital devices could be charged in electrical sockets.
