Stablecoins for Financial Inclusion in Emerging Markets
Financial inclusion has long been a challenge in emerging markets, where millions of people remain unbanked or underbanked. Traditional financial systems often fail to reach rural communities due to high transaction costs, lack of infrastructure, and strict banking requirements. Stablecoins a type of cryptocurrency pegged to a stable asset like fiat currency or commodities are now emerging as a game-changer for bridging this gap. By offering fast, affordable, and borderless transactions, stablecoins can help individuals and small businesses in developing countries participate in the global economy without the need for traditional banks. Why Financial Inclusion Matters in Emerging Markets? According to the World Bank, nearly 1.4 billion people worldwide do not have access to formal banking services. This lack of access limits their ability to save, invest, and grow economically. In emerging markets, barriers include: Limited availability of bank branches and ATMs in rural areas...