More than 1.4 billion people around the world lack access to essential financial services, posing a significant challenge. PwC report highlights blockchain’s role in financial inclusion, with an increase in nearly 200 stablecoins. The report also reveals that 3.55 billion people in developing economies have never participated in saving money.
PricewaterhouseCoopers (PwC) has highlighted the need for blockchain technology to combat the current problem of financial inclusion, which will only increase as time goes by.
“Financial inclusion remains a major global challenge, with more than 1.4 billion people lacking access to an account or essential financial services,” the report states.
PwC Champion Blockchain for Broader Financial Inclusion
A recent PwC report highlights substantial growth in innovative services within blockchain networks. PwC noted that this has played a key role in fostering financial inclusion.
One role that stood out, in particular, is the rise of stablecoins in the following terms:
“Today there are almost 200 different stablecoins available, offering users the stability of a variety of traditional fiat currencies while maintaining the benefits of digital assets. The largest stablecoins are pegged to the US dollar.”
PwC emphasizes the importance of offering alternatives, as many people in developing countries face limited access to conventional financial institutions. Additionally, PwC states that around 3.55 billion people in emerging economies have never participated in saving money.
However, PwC highlights the emergence of crypto platforms that are currently facilitating the creation of digital wallets on blockchain networks, allowing users to store stablecoins and generate returns. This presents an alternative for people who do not have access to conventional financial institutions.
PwC: Developing Countries Favor CBDCs in Digital Payments
43% of people in developing countries have never made online payments. Meanwhile, a recent survey by the CFA Institute reveals that central bank digital currencies (CBDCs) are gaining more ground in developing countries.
In developed countries, only 37% of respondents showed a preference for CBDCs, while in emerging markets, the figure rose to 61%.
On the other hand, it was recently reported that 130 countries, representing 98% of the global economy, are actively exploring CBDC implementation.
The study consisted of an online survey that was carried out from February 13 to February 27, 2023 and published in July of this 2023, on a random sample of 90,443 members of the CFA Institute worldwide. The results reveal that 40% of those surveyed have low knowledge about central bank digital currencies (CBDC).
In addition to these results, the report shows that, despite not very well understanding the fundamentals of central bank digital currencies (CBDC), emerging markets are in favor of the issuance of this type of cryptographic instrument.
Last August, BBVA presented a report according to which there will be significant growth in AI interfaces and chatbots related to customer service, which will facilitate the growth of FinTech. In such a way that this type of technology companies will grow 21% annually over the next five years.
Additionally, most G20 countries are aggressively pushing their plans to introduce CBDCs in the coming years. Meanwhile, in India, thousands of customers and merchants signed up for the CBDC pilot in the country. The e-rupee initiative is actively exploring the viability of an alternative to digital cash.
More than 20 countries in total are reportedly actively moving towards starting CBDC pilot programs this year.
By Leonardo Pérez
