Resources

Blockchain: Opportunities for Private Enterprises in Emerging Markets

IFC worked with key influencers and experts in the world of blockchain, distributed ledgers, and digital finance to create a series of six in-depth research papers examining the potential and perils of blockchain. These documents collectively examine the general contours and technology underlying blockchain, its growing impact in the financial services sector, and its implications for emerging markets.

They also provide a regional analysis of blockchain developments in emerging markets, with particular attention paid to financial sectors, as well as a look at the implications and potential applications of blockchain beyond finance, especially with regard to global value chains.
 


Key Messages
  • Blockchain is a new mechanism of trust that could bring significant productivity gains to multiple industries, from financial services to energy, intellectual property, the public sector, and beyond.

  • Emerging markets in particular may be poised for a rapid adoption of blockchain due to their underbanked populations, higher banking risks, and lower bank penetration.

  • Blockchain may be especially useful in mitigating the ongoing de-risking by financial institutions, a trend that is having a severe impact on recipients of remittances, businesses that need correspondent banking, and institutions that work in fragile and conflict states.

  • Blockchain’s potential uses may carry beyond financial sectors, with possible benefits for global value chains that cross multiple borders and connect advanced and emerging economies.

  • Blockchain has potential productivity gains for industries including finance, energy, intellectual property, public sector & more

  • Emerging markets are poised to benefit from blockchain due to underbanked populations, higher banking risks, & low bank penetration

  • Blockchain can help people in developing markets enter and access the financial system, with secure ID and data services

  • Blockchain could be instrumental in countering the bank de-risking in developing nations, bringing credit and finance back to EM populations

  • Blockchain-based services are proliferating among developing nations in Asia, Africa and Latin America, with real potential benefits

  • Digital finance -- mobile networks, the cloud, big data, and blockchain -- is the key to bringing banking to the next billion people

  • Blockchain potential uses go beyond financial sector -- with possible benefits for global value chains, esp in agriculture and pharmaceuticals