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There are plenty of people who live without a phone, so living without a phone number is definitely feasible.

why do we need a phone number in 2023?

Some websites require a phone number to sign up (e.g. Twitter). But those websites are unnecessary and usually a bad idea to use anyways.

two-factor authentication?

Any company that requires you to use SMS for MFA is insane; simjacking is no joke. I wouldn't do business with such a company.

Some companies will let you use a phone app (e.g. DUO). A few will let you use a generic 2FA/MFA client (e.g. https://github.com/paolostivanin/OTPClient).

for banking applications?

If you can't get a bank account without a phone number, then it's time to go all-in on Bitcoin.

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