PricewaterhouseCoopers (PwC) has underscored the imperative role of blockchain technology in addressing the escalating issue of financial exclusion, which is projected to become even more pronounced over time.
“Financial inclusion remains a significant global challenge, with over 1.4 billion people lacking access to an account or essential financial services,” the report highlighted.
PwC Advocates Blockchain for Enhanced Financial Access
A recent PwC report sheds light on the remarkable expansion of innovative services within blockchain networks, underscoring their pivotal role in promoting financial inclusion.
One particularly noteworthy development is the proliferation of stablecoins:
“Nearly 200 different stablecoins are available today, providing users with the stability of various traditional fiat currencies while retaining the advantages of digital assets. The largest stablecoins are pegged to the U.S. dollar.”
This underscores the importance of offering alternatives, especially considering the limited access to conventional financial institutions faced by many individuals in developing nations.
Furthermore, PwC points out that approximately 3.55 billion people in emerging economies have never had the opportunity to save money.
However, PwC highlights the emergence of cryptocurrency platforms that facilitate the creation of digital wallets on blockchain networks. These wallets enable users to store stablecoins and generate yields, offering a viable alternative to those lacking access to traditional financial institutions.
Developing Nations Show Interest in CBDCs
In addition, 43% of individuals in developing countries have never engaged in online payments.
Meanwhile, a recent survey by the CFA Institute reveals a growing preference for central bank digital currencies (CBDCs) in developing nations. In developed countries, only 37% of respondents favored CBDCs, whereas in emerging markets, the figure surged to 61%.
Notably, BeInCrypto reported that 130 countries, accounting for 98% of the global economy, are actively exploring CBDC implementation. Furthermore, most G20 nations are aggressively advancing their plans to introduce CBDCs in the coming years.
Meanwhile, India witnessed significant participation from customers and merchants in its CBDC pilot program. The e-rupee initiative is actively exploring the feasibility of a digital cash alternative.
Reportedly, more than 20 countries are actively progressing toward the initiation of CBDC pilot programs in the current year.