The Role of Blockchain in Reaching the Unbanked

A Case for Crowdfunding in Africa and South America

When Maria, a talented artisan in rural Peru, needed $500 to buy materials for her weaving business, traditional banks weren’t an option. She lived hours from the nearest city, had no formal credit history, and represented the “unbanked” population—over 1.4 billion adults worldwide who lack access to basic financial services. Today, thanks to blockchain-powered crowdfunding, Maria’s business is thriving, serving customers across three continents. This is the potential of blockchain to reach the unbanked in action, providing people with the means to grow their businesses, support their families, and foster economic independence.

The Crisis of Financial Exclusion

In many parts of the world, access to banking is a distant reality. The statistics paint a stark picture: 57% of adults in Sub-Saharan Africa remain unbanked, and nearly a third of Latin Americans lack access to formal financial services. The barriers are numerous. From high operational costs and minimum balance requirements to documentation hurdles and geographic isolation, traditional banks often fail to serve those in remote or impoverished communities. The impact on women is particularly acute, with women in these regions being 9% less likely than men to hold a bank account. Without financial services, these communities are held back from economic growth, restricted from accessing resources, and left financially vulnerable.

Blockchain: A New Path to Financial Inclusion

Blockchain technology is changing this landscape by offering the unbanked a decentralized financial platform that sidesteps traditional banking constraints. Through blockchain, people can access a digital identity without needing standard documentation, reducing the need for physical infrastructure. Transactions become cheaper, faster, and more transparent, with blockchain-based smart contracts automating the transfer of funds and milestones being verified in real-time. In addition, blockchain’s public ledger provides a clear, immutable record of each transaction, allowing anyone to see where funds are going and how they are being used.

Real Impact: Stories from the Ground

Blockchain’s impact on financial inclusion isn’t theoretical; it’s happening. In Nigeria’s Kano State, a farming cooperative used blockchain-based crowdfunding to raise $25,000 for irrigation equipment. This funding allowed the community to secure equipment crucial for modern farming. Donors could track how their contributions were used, and automated smart contracts ensured that funds were released only as project milestones were reached, adding layers of security and accountability to the process.

Meanwhile, a remote village in Colombia’s Chocó region raised $18,000 for a solar power project, thanks to blockchain-powered micro-donations. The blockchain system provided transparency, allowing donors worldwide to see their contributions in action, while local ownership of the project strengthened community engagement and ensured long-term sustainability. This direct, transparent fund management established a foundation of trust that traditional channels often struggle to achieve.

Beyond Traditional Crowdfunding

Blockchain-based crowdfunding does more than raise funds; it builds community. As each project reaches milestones, participants establish a digital track record, creating a financial history that can serve as a form of credit. Community members who previously lacked access to formal financial services are now creating verifiable records, which can eventually open doors to more advanced financial products. Beyond the individual benefits, entire communities are empowered as residents gain skills in digital technologies, manage projects collectively, and foster local financial networks.

Overcoming Challenges in Implementation

Of course, blockchain’s adoption in remote areas is not without hurdles. Limited internet connectivity can hinder access, and technical literacy in blockchain remains low. However, mobile-first approaches, offline transaction capabilities, and local digital hubs are helping bridge these gaps. Blockchain systems are increasingly designed with simple mobile interfaces, visual tracking, and language support to ensure ease of use.

Establishing trust is also essential. By partnering with trusted local organizations and showcasing successful projects, communities are more likely to embrace blockchain as a beneficial, accessible tool. Regular updates and progress tracking build confidence, making blockchain less of an abstract technology and more of a transparent, trustworthy platform.

The Path Forward

As blockchain technology continues to evolve, we can expect deeper integration with local mobile money systems, further compatibility with traditional banking networks, and ongoing regulatory developments. Faster transaction speeds, reduced energy consumption, improved user interfaces, and offline capabilities are all on the horizon. The result will be a more robust, flexible, and accessible platform for financial inclusion.

Building an Inclusive Financial Future

The combination of blockchain and crowdfunding is unlocking global capital, providing financial independence, and promoting sustainable development. It’s not just about funding projects; it’s about creating lasting economic opportunities for underserved communities across Africa, South America, and beyond. For these communities, blockchain offers the means to join the global economy, build skills, and establish resilient networks.

Get Involved

The movement toward universal financial inclusion is already underway. Whether you’re a donor, a developer, or a community organizer, there’s a role for you in this transformation. By supporting blockchain-based crowdfunding and advocating for financial accessibility, you can help build a financial system that serves everyone.

Ready to be part of the change? Discover how blockchain-powered crowdfunding is transforming lives and join the movement for universal financial inclusion.