The unbanked and financially excluded

2 min video examining how Blockchain technology may be able to finally include the 1.7 billion people who are currently unbankedIn a recent statement, the CEO of Mastercard claimed that Bitcoin is unable to help those financially excluded/unbanked, but Central Bank Digital Currencies (CBDC) potentially could. However, it is arguable as to whether Banga simply trying to advertise for Mastercard since he also stated: “Today, we’re one of the largest patent holders in the space of central bank digital currencies.” In addition to this, the World Bank has estimated there are 1.7 billion people globally unbanked i.e., they do not have access to formal financial service — effectively barring them from managing their finances. In theory, provided you have access to the web, it is possible not to have reliance on traditional banks but use digital currencies and/or cryptos instead to make payments.Unbanked population by region (%)Source: Findex database, WorldbankFurthermore, a report from Deloitte has listed a selection of reasons (according to Findex and the World Bank) as to why citizens in certain countries do not have a bank account:· geographic access to financial institutions is limited· insufficient funds to operate a bank account· financial services are too expensive, relative to people’s income· lack of necessary personal documentation (ID, passport etc) to open a bank account· family member already has a bank account· religious reasons· lack of trust towards financial institutionsAnother report, commissioned by Amazon, found that “Digital payments will be a core foundation for extending basic financial inclusion. More than 90% of respondents consider that innovations in digital payments processes were among the most significant areas in which fintech was improving financial inclusion objectives within their own jurisdiction.” One of the key challenges is provision of assistance to SMEs, which are often unable to obtain credit since they are…