Integrating Marginalized Communities into Financial Systems: The Promise of Blockchain Technology

The emergence of blockchain technology has generated considerable interest because of its ability to transform financial transactions and improve access to banking services. Industry and regulators specialists have also researched the possible of using blockchain technology to replace or even upgrade international payment systems, including correspondent banking. Blockchain’s decentralized ledger technology permits for the documentation of transactions and secure authentication. The research aims to assess the effect of blockchain on bringing marginalized people into the mainstream of financial inclusion. Its objective is to emphasize the most effective methods and knowledge gained from sustainable development endeavours. The research employs a methodical examination of existing literature to identify how blockchain technology might enhance the progress of digital financial inclusion. These applications include financial transactions, savings augmentation, credit supply, and insurance service facilitation. The results suggest that even if the many global development goals do not explicitly emphasize financial inclusion, achieving quite a few of these goals will be necessary. Therefore, using blockchain technology to enhance financial inclusion could significantly contribute to sustainable development. Hence, it is imperative for governments, especially in developing nations, to give utmost importance to investing in blockchain technology in direction to improve the availability of financial services for their population.