Blockchain Technology in Enhancing Financial Inclusion: A Study of Developing Economies

Abstract

Blockchain technology has emerged as a transformative tool in promoting financial inclusion, particularly in developing economies where traditional banking infrastructure is often limited. This study explores the potential of blockchain to provide accessible, secure, and cost-effective financial services to underserved populations in Latin America. Through case studies in Argentina, Chile, and Brazil, we assess how blockchain-based platforms are enabling access to banking services, digital payments, and micro-lending. Our research shows that blockchain reduces transaction costs, increases transparency, and enhances trust among users. However, challenges such as regulatory uncertainty, technological literacy, and infrastructure gaps remain. The paper concludes with recommendations for policymakers to create a supportive regulatory environment and promote blockchain literacy programs to accelerate financial inclusion efforts.