For most people, 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. Promoting the development of new privacy solutions, streamlining business and financial processes, improving the performance of companies and governments around the world. Therefore, today we will talk about how Blockchain technology is the way to greater financial inclusion.
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 of today. And, right now there are billions of people around the world who do not have access to traditional banking. By 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 obtaining the money they need to start their companies. What would generate jobs, technological advancement and greater economic prosperity for their societies.
Not to mention the additional difficulties that this situation of financial exclusion generates for sending money across borders. Leading these operations to have high commissions and execution times of several days. Making it difficult for small and medium businesses to carry out transnational transfers, being one more obstacle for the economy that could find a solution through Blockchain technology.
Blockchain technology and the future of finance
And it is that, in recent years, Blockchain technology has established itself as an alternative to traditional means of payments. Skipping the need for several intermediaries to participate in international transfers. Allowing them to be carried out directly and securely through the blockchain.
An opinion that is supported by Adrienne Harris, Special Assistant to the President during the Barack Obama administration.
However, for Harris, the potential of Blockchain technology is currently blocked due to the lack of clarity in the regulations on the sector. Well, up to now, no clear rules of the game have been established for the activity of financial technology companies.
“Fintech businesses are hungry for clarity. It doesn’t mean they want too onerous regulation, but they do want to understand the rules of the road. My advice to policy makers, finance incumbents, and innovative start-ups is to get engaged. There are still these geographic and cultural divisions that I think more engagement would help overcome.“.
In this way, Harris makes it clear that the greatest challenge facing Blockchain technology and other digital media to promote financial inclusion is the need for a solid institutional framework that allows them to develop. This being, therefore, the main task for the crypto community with a view to the expansion of blockchains.