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.
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.
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!
Stay updated by connecting with us on LinkedIn, Medium, Twitter, and YouTube.
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