Despite major strides in financial inclusion over the past decade, a staggering 1.4 billion adults around the world remain unbanked, according to the World Bank. For many, this isn’t due to a lack of demand or digital access; rather, it’s because the traditional financial system simply isn’t built to serve them. This isn’t just a humanitarian issue; it represents a significant untapped economic opportunity.
In much of sub-Saharan Africa, Latin America, and Southeast Asia, individuals and businesses are excluded from formal financial services due to structural impediments such as a lack of verifiable identification, geographic inaccessibility, volatile local currencies, or the prohibitively high cost of cross-border payments. Even where digital banking is expanding, it often relies on underlying infrastructure that is too expensive, too slow, or too exclusive. This dynamic creates a critical bottleneck, preventing economic participation and stifling growth.
This isn’t merely a development issue; it’s a profound commercial one. For global businesses, startups, and Small and Medium-sized Enterprises (SMEs) in emerging markets, these entrenched barriers make it nearly impossible to engage competitively in international trade. And yet, paradoxically, these are some of the most entrepreneurial and digitally connected markets in the world, brimming with potential waiting to be unleashed.
Codified Discrimination in Traditional Finance: A Hidden Tax on Progress
Traditional financial systems are often riddled with hidden forms of exclusion, a phenomenon we might call “codified discrimination.” Whether intentionally or not, many banks and networks apply restrictive terms to certain countries or business types due to perceived risk, regulatory complexity, or compliance concerns. Startups in Lagos, São Paulo, or Dhaka may face prolonged transaction delays, opaque exchange rates, and steep fees simply because of their geographical location.
This kind of discrimination, hardwired into legacy payment systems, severely limits participation in global markets. In some instances, institutions impose significantly higher charges or limit services in developing countries as a default risk mitigation strategy. For example, average borrowing costs in Africa are nearly ten times higher than those in the United States, largely due to inflated perceptions of risk rather than actual economic performance. This punitive approach creates a hidden tax on emerging economies, leading to a stifling of innovation and economic progress.
For businesses targeting these markets, understanding these systemic biases is crucial. Simply replicating Western financial models will perpetuate exclusion. Instead, solutions must address the root causes of these barriers.
Crypto as Inclusive Infrastructure: A New Paradigm for Global Commerce
Crypto, particularly stablecoins, offers a practical and scalable alternative. Pegged to fiat currencies, stablecoins enable fast, low-cost, and transparent cross-border transactions. For startups and SMEs in underbanked markets, this provides unprecedented access to international payments without needing to pass through layers of intermediaries or restrictive networks. The global stablecoin market is projected to reach $500 billion by 2028, highlighting its growing utility as a foundational layer for international commerce.
Crucially, crypto is open by design. Unlike legacy banking systems built on national boundaries and institutional gatekeeping, crypto networks are decentralised and accessible to anyone with an internet connection. This inherent openness dramatically reduces entry barriers and offers a more level playing field for participants in emerging economies. The total value locked in decentralised finance (DeFi), much of which leverages stablecoins, has grown exponentially, demonstrating the real-world demand for open and permissionless financial infrastructure.
For example, an e-commerce startup in Nigeria looking to sell into Europe might struggle with liquidity, currency conversion delays, or prohibitive fees through traditional channels, sometimes losing up to 7-10% of transaction value in fees and unfavourable exchange rates. By utilising a crypto payment gateway and stablecoin settlement, the business can receive payments instantly, at a far lower cost (often less than 1%), and pay suppliers or contractors without being penalised by geography. This efficiency directly translates into higher profit margins and increased competitiveness.
Furthermore, digital wallets empower small businesses and informal workers by allowing them to store value, manage payments, and participate in the global economy without needing a traditional bank account. The number of active crypto users globally has surged to over 560 million, with a significant portion residing in emerging markets, signalling a clear shift in financial behaviour.
A Necessity, Not a Nice-to-Have: Crypto’s Strategic Role in Emerging Markets
In emerging markets, crypto adoption hasn’t been driven by mere trend, but by undeniable need. When financial infrastructure is too rigid or exclusionary, crypto provides functionality that legacy systems simply can’t. It enables commerce where banking fails, delivers liquidity where FX barriers exist, and builds bridges where formal networks fall short.
Blockchain technology plays a critical role in this shift. Its inherent transparency and security allow users to verify and execute transactions without relying on trust in third parties. For underserved populations, this creates a rare combination of autonomy and reliability, essential for building long-term financial inclusion and fostering economic resilience.
This is not about choosing crypto over traditional finance. The most resilient and effective models are hybrid, blending regulated infrastructure with decentralised tools to offer inclusive, low-friction access to financial services. This pragmatic approach leverages the strengths of both systems to create a more robust global financial ecosystem.
Importantly, this also makes significant commercial sense. The populations underserved by traditional financial institutions are among the most entrepreneurial, mobile-first, and demographically dynamic globally. Financial services tailored to their needs,that are fast, flexible, and transparent, open the door to significant market growth and new revenue streams for innovators.
Inclusion as Economic Infrastructure: The Future of Global Connectivity
Financial inclusion is often discussed as a social good, but it is equally, if not primarily, an infrastructure issue. In a global economy increasingly defined by agility and cross-border interaction, access to efficient and equitable financial tools is a baseline requirement, not a bonus. Denying this access is akin to denying access to electricity or transportation networks in the 21st century.
Crypto offers the chance to fundamentally redefine who gets access and on what terms. With stablecoins, decentralised rails, and mobile-first infrastructure, it is levelling the playing field for businesses and individuals who have long been excluded, allowing them to participate meaningfully in the global economy. This shift could unlock trillions in economic value.
For the world’s unbanked, inclusion doesn’t start with access to a bank account. It starts with access to functionality. And crypto, being open, decentralised, and accessible, is delivering exactly that, paving the way for a more equitable and prosperous global future.
Meryem Habibi, CRO, Bitpace
originally published on financederivative.com