Financial Inclusion With Blockchain

In 2009, the digital currency Bitcoin became the financial sector’s first practical application of blockchain technology. The confidence-building distributed ledger technology behind Blockchain proved to be a revolutionary enabler that promises to make payments more traceable, transparent, and cheaper more. Blockchain technology also has the potential to is vastly improve financial inclusion by, for instance, reducing dependence on local circumstances, such as non-existent financial infrastructure, which can be particularly important in fragile contexts. However, there are still significant barriers that restrict the technology’s widespread adoption in developing countries, such as high costs and a lack of regulation.

This factsheet highlights the current challenges involved in widespread implementation of Blockchain technology and offers recommendations for stakeholders in international development cooperation.