What is the Value Proposition of Stablecoins for Financial Inclusion?

Introduction

Money consolidation is a well-known issue worldwide: 1.7 billion people are “bankrupt” – missing an account at a financial institution or mobile phone provider – according to the World Bank.1 Meanwhile, many small and medium-sized businesses face difficulties in profiting from the current financial system. . Individuals and small businesses may not be able to access financial assistance; if they can, these services may not be of the highest quality, most appropriate, or affordable. Global Trade defines financial integration as the ability of individuals and businesses to access “affordable and cost-effective financial services and services that meet their needs.”

It is often said that stable currencies can solve problems and open up some of the opportunities around financial integration around the world.3 However, little by little research has been done on the subject. This white paper analyzes global trends and builds on existing research examining the benefits and risks of stable currencies for financial integration to the previously abandoned or unsecured stocks. Case studies or situations, although limited, attempt to take into account the scope and complexity of the problems facing these areas. Although they may not fully represent the slate or complexity of all situations, we hope that the conclusions we draw from our situation will apply to different regions and regions.

To complete this analysis, we compare the effectiveness of stable and unsecured currencies with those of pre-existing blockchain technology, both electronic (e.g. bank credit, mobile phone, and e-money) and physical (e.g. financial.) We examine current barriers to individual circumstances that see whether stablecoins overcome, avoid, or increase those barriers.

We aim to clarify the conditions and requirements for facilitating financial inclusion and provide politicians, businesses, public organizations, and exporters with a better understanding of the opportunities, risks, and benefits that stable currencies offer now and may bring in the future financial integration. Most importantly, this paper does not examine the validity of stalcoins except in the context of financial inclusion, and our purpose is not to state information on whether or not individuals, communities, or powers should be associated with stable coins as an important factor.

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