Leveraging Blockchain Technology to Improve Financial Inclusion

At BFG, we are convinced that blockchain technology has the potential to serve the public good. Against this backdrop, we have established the responsibility to create a level playing field and a more equitable future for the less fortunate. We strongly believe financial inclusion is a key pillar in achieving said goal. To this day, about 1.7 billion people remain unbanked, not to mention the hundreds of millions who are underserved or only have access to poor and unreasonably expensive financial services. - Author: Elias Mendel

The advent of the internet has drastically improved the lives of many people living in poor countries. Firstly, the internet has improved access to information, allowing people to gain knowledge and skills that can help them to improve their lives. In addition, it has enabled people to find employment opportunities, access financial services, and health information, and connect with people around the world. Yet, due to the notorious double-spending problem, which describes the difficulty to ensure that digital money is not being duplicated or counterfeited, similar benefits could not be achieved in people’s everyday monetary interactions. Not having access to financial services, from a simple cheque account to making remittance payments or taking out a loan is a situation people in privileged circumstances do not have to face. Yet, it is part of a harsh reality for many others around the world. Enter crypto and blockchain. 

Bitcoin was designed to eliminate the double-spending problem by utilizing a distributed public ledger, known as a blockchain. This blockchain records all transactions, which are digitally signed and encrypted, preventing them from being spent twice. This has opened up a world of opportunity for those with internet access, resulting in a wide variety of cryptocurrencies being developed.

Despite the proliferation of DeFi, blockchain infrastructure, GameFi & the Metaverse, and NFTs, Web3 accelerators have yet to adequately address the issue of financial inclusion. This is likely due to the high upfront investments, legal and bureaucratic challenges, and the need for a long-term outlook associated with investing in the niche. 

While not as buzz-generating or headline-grabbing as other areas, financial inclusion is a crucial concern. BFG is one of the few incubators with an outstanding focus on financial inclusion and has made four investments in startups that use blockchain technology to promote financial inclusion.

1. Basenode provides freelancers with the tools to succeed in the Web 3.0 era. The objective is to empower freelancers to accept cryptocurrency payments, preparing them for a blockchain-based business. As such, basenode.io is the tailor-made accounting and invoicing solution for the embracing token economy. 
   
   
2. EkoLance focuses on financial inclusion by being a one-stop shop for companies that source web3 talents, mainly focusing on emerging countries. Ekolance offers high-quality blockchain education and connects employers with qualified blockchain talents. Follow them on LinkedIn.
   
   
3. meCash is enabling SMEs in Africa to send and receive cross-border payments for goods and services using blockchain technology and stablecoins. By utilizing stablecoins, meCash allows for on- and offramp of fiat to crypto while offering real-time settlements. meCash bridges the gap between buyers and sellers and settles transactions in either fiat currency or stablecoins directly to users’ bank accounts, mobile, or web3 wallets. Follow them on LinkedIn. 
   
   
4. Clamp’s mission is to onboard the next one billion crypto-users by enabling passive investments in digital asset indexes that take less than 30 seconds and do not require prior knowledge. The founder was a Qfellow at ConcourseQ and builds on top of lessons learned from the DeFi Pulse Index (DPI). Follow them on LinkedIn.

In our upcoming Superstars S3 season, financial inclusion will again be one of our areas of interest. If you feel like venturing into this topic, or want to get started in the Web3 space in general, take a look here.

About Blockchain Founders Group

Blockchain Founders Group (BFG) is the driving force behind web3 innovation. As a company builder, we bring together a team of blockchain visionaries, experienced entrepreneurs, and industry experts, all committed to nurturing emerging talent. Our BFG acceleration programs serve as your springboard for launching blockchain startups, transforming concepts into reality in just 2-3 months. Each cohort develops 5-8 unique web3 ideas, and selected projects will be financially supported with 70,000 - 100,000 EUR, along with access to our extensive network. Join us in shaping the future of web3!

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Contact: Max Zheng, Head of Corporate Development & BFG Superstars Program, max.zheng@blockchain-founders.io

References
[1] https://www.worldbank.org/en/topic/financialinclusion/overview