05/10/23

FINTECH: PwC Urges Blockchain in Developing Nations

As published on: beincrypto.com, Thursday 5 October, 2023.

• Over 1.4 billion people globally lack access to essential financial services, posing a significant challenge.
• PwC report highlights blockchain's role in financial inclusion, with a surge 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 outlined the need for blockchain technology to combat the ongoing financial inclusion issue, which is only set to get bigger as time goes on.

“Financial inclusion remains a significant global challenge, with over 1.4 billion people lacking access to an account or essential financial services,” the report noted.

PwC Champions Blockchain for Wider Financial Access
A recent report from PwC highlights substantial growth in innovative services within blockchain networks. PwC noted this has played a pivotal role in fostering financial inclusion.

One role it noted, in particular, is the surge in stablecoins:

“Nearly 200 different stablecoins are available today, 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 U.S. dollar.”

It emphasizes the significance of offering alternatives since numerous individuals in developing nations face limited access to conventional financial institutions.

Number of People and Percentage of People Who Have Not Used Financial Services. Source: PwCNumber of People and Percentage of People Who Have Not Used Financial Services. Source: PwC
Moreover, PwC asserts 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 yields.

This presents an alternative for individuals who do not have access to conventional financial institutions.

Furthermore, 43% of individuals in developing countries have never conducted online payments.

Meanwhile, a recent CFA Institute survey reveals that central bank digital currencies (CBDCs) are gaining more traction in developing countries.

In developed nations, only 37% of respondents showed a preference for CBDCs, while in emerging markets, the figure rose to 61%.

On the other hand, BeInCrypto recently reported that 130 countries, accounting for 98% of the global economy, are actively exploring the implementation of CBDCs. Furthermore, most of the G20 nations are aggressively pushing forward with their plans to introduce CBDCs in the coming years.

Meanwhile, India saw thousands of customers and merchants enroll in the CBDC pilot in the country. The e-rupee initiative is actively exploring the feasibility of a digital cash alternative.

Reportedly, more than 20 countries in total are actively advancing towards the initiation of CBDC pilot programs this year.

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PwC Blockchain Fintech