Financial Inclusion

What is the value proposition of stablecoins for financial inclusion?

Financial inclusion is a well-recognized global challenge: approximately 1.7 billion people are “unbanked,” lacking an account at a financial institution or mobile-money provider. Meanwhile, many small and medium-sized business face challenges realizing benefits from the current financial system. It is often suggested that stablecoins could address challenges and unlock opportunities around financial inclusion globally. Yet, very little extensive analysis on this subject has been conducted.

This white paper examines real-world case studies and builds on existing research to assess the benefits and risks of stablecoins for financial inclusion for historically excluded or under-served populations. Stablecoins’ capabilities and limitations are compared with those of pre-existing forms of money. The aim is to provide stakeholders with a better understanding of the opportunities, risks and benefits stablecoins currently present, and of the conditions and prerequisites for their success in enabling inclusion.