Among the frontline solutions propagated since the advent of the Blockchain is the development of global financial infrastructure that will reach the unbanked and underbanked populations of the world.
Empowerment
More than two bln people around the world do not have access to basic financial services as a result of the absence of infrastructure. The consequence of this is that they are deprived of efficient methods of transferring value and affordable credit.
According to Alexi Lane, CEO and co-founder of Everex: “Affordable credit is a key element of entrepreneurship and economic empowerment.”
The solution offered by Blockchain technology in the financial sector appears to be one of the most crucial promises that the global economy has been presented with in a long time.
Since the creation of Bitcoin and the other Blockchain platforms that followed, the hope of reaching the so far unreached population has been given a boost. The P2P technology offered by Blockchain has by far eliminated the cost and logistics of building physical infrastructure before reaching the ends of the earth. Also, intangible elements such as trust and data immutability, among others, are no longer issues of utmost concern. Therefore, the world is presented with an opportunity to indeed achieve global financial empowerment.
Fuel of expansion
The participation of corporations in delivering infrastructure to the far corners of the globe is evident in the level of growth of major Blockchain platforms.
After Bitcoin, the most adopted Blockchain platform, as evident in their market capitalization, is Ethereum.
As an example, a Blockchain company specialized in developing Ethereum applications, Everex, recently announced that it’s going to reach two bln unbanked and underbanked individuals by allowing them to access affordable instant micro-credit and global fiat transaction services from mobile devices.
Ethereum’s rise
Such developments among many others have seen the Ethereum value to rise by over $150 in less than two months.
Founder at Expanse.tech, Christopher Franko, describes Blockchain as the single most important technology for the unbanked or underbanked.
Franko explains:
“In America alone, there are roughly 10 mln people that fall into this category and according to the Global Index, that number reaches higher than two bln. That’s over two bln people that don’t have basic access to the infrastructure needed to be an active participant in the global economy. Blockchain technology should focus heavily on this segment of people and offer low-to-no cost solutions.”
According to Franko, he and his team are focusing on that very thing as well as other empowering software for things like governance and identity management. He also notes that as the world becomes more interconnected, its need for borderless identity and financial and governance infrastructure increases.