For most people, the Blockchain technology is only the element that allows the existence of Bitcoin. However, in recent years blockchains have proven to be much more than that. Driving the development of new privacy solutions, Bitcoin Loophole streamlining business and financial processes, improving the performance of companies and governments around the world. That is why today we will talk about how Blockchain technology is the way to greater financial inclusion.
Merger between Blockchain technology and 5G applications
Exclusion in finance
The exclusion of a large part of the world’s population from the international financial system is one of the most serious economic problems today. At present, billions of people around the world do not have access to traditional banking. Depriving them of any means to send and receive money remotely, or to obtain financing for their projects.
This, at the end of the day, represents a serious loss of efficiency in the international economy. Preventing millions of potential entrepreneurs from getting the money they need to start their businesses. This would generate jobs, technological advancement and greater economic prosperity for their societies.
Not to mention the additional difficulties this situation of financial exclusion generates for sending money across borders. Leading to these operations having high fees and execution times of several days. Making it difficult for small and medium entrepreneurs to make transnational transfers, being one more obstacle for the economy that could be solved through the Blockchain technology.
Blockchain technology and the future of finance
In the last few years, Blockchain technology has been consolidated as an alternative to traditional means of payment. Skipping the need for several intermediaries to participate in international transfers. Allowing that the same ones are carried out in a direct and safe form through the chain of blocks.
An opinion that is supported by Adrienne Harris, Special Assistant to the President during the administration of Barack Obama.
However, for Harris the potential of the Blockchain technology is currently blocked due to the lack of clarity in the regulations on the sector. So far, no clear rules of the game have been established for the activity of financial technology companies.
„Fintech’s businesses are hungry for clarity. It doesn’t mean they want overly burdensome regulation, but they do want to understand the rules of the road. My advice to policy makers, financial owners and innovative start-ups is to get involved. There are still these geographical and cultural divisions that I think more engagement would help overcome.
In this way, Harris makes clear that the biggest challenge facing Blockchain technology and other digital media in promoting financial inclusion is the need for strong institutions to enable them to develop. This being, therefore, the main task for the crypto community with a view to the expansion of blockchains.