Adding to the mushrooming list of sectors cryptocurrency has impacted, the latest development is looking into the possible benefits that blockchain can offer the unbanked and underbanked population of the world. The number of people around the globe who don’t have any kind of access to a banking system stands at over 1.7 billion as per The World Bank. Blockchain technology can radically open an innovative portal of accessibility for the physical cash-dependent population. Though many countries of the world have moved towards a widely paperless economy, there are still many emerging economies who have the scope to utilize the boom of blockchain. Where there is a shortage of physical money, this technology would prove effective to bring people under the financial umbrella of inclusion.
Likewise, though broadband connectivity is still trying to achieve universal maximization in the most economically backward pockets of society, the gap between smartphone density and mobile users is inching closer every day. As per Statista’s 2022 report, the worldwide smartphone users stand at 6.6 billion. Blockchain tech is expected to serve this segment of users to equip them with fiscal literary, and empower them with online accessibility and purchasing power. This would also result in economic development and pave creative avenues of business for micro and nano transactions.
nChain and central banks are working together to envisage the future of crypto where even a person without a bank account can benefit from the potential of Central Bank Digital Currencies (CBDC). Blockchain payments will inevitably have the edge over services like Paypal or Venmo which require high transaction charges and take time to transfer. Blockchain ventures like Grassroots Economics and Etherisc along with ACRE Africa are already experimenting with bridging the credit gap and providing an alternative insurance protocol. If these ideas are incorporated in a full-fledged manner, it would make blockchain a game-changer in the realm of global payments. It would play a pivotal role in introducing digital accessibility to financial services in low-income communities and prove to be yet another an efficient model for blockchain utilization.
