Claudio Koller ยท 3/8/2023

Bitcoin and Financial Inclusion

Financial inclusion refers to the process of creating an inclusive financial system that provides access to financial services for people from all walks of life.

An important factor in achieving financial inclusion is the use of digital technologies. In this context, Bitcoin is of particular interest as a decentralized digital payment system.

What does Financial Inclusion mean?

Financial inclusion refers to the process whereby all people, regardless of income, social class, gender, or geographic location, have access to financial services and products.

This includes traditional banking services such as accounts, loans and insurance, but also modern financial tools such as digital payments and mobile banking.

Growth Opportunities

Financial inclusion is important because it enables people to manage their money safely, access credit to finance their business or education, and hedge against unforeseen events such as illness, geopolitical crises, or natural disasters.

Financial inclusion also contributes to economic development by increasing people's participation in the financial system and improving the growth opportunities of businesses and countries.

Reasons Financial Exclusions

Financial exclusions can be caused by a variety of factors, including lack of infrastructure, high costs, lack of legal frameworks, inadequate financial education, and discriminatory practices.

There is no one who can stop or pause the system, print more, or change the rules. No matter how little you have, you are treated equally in the eyes of the Bitcoin network.

Alex Gladstein, CSO Human Right Foundation (HRF)

Financial Infrastructure in Developing Countries

According to the 2014 Global Findex, approximately 2 billion people, or 38% of the world's adult population, did not have a bank account at the end of 2014. There are many reasons for this.

At the same time, however, the expansion of information and telecommunications infrastructure in developing countries is increasing rapidly.

In African countries, two-thirds of the adult population now has access to information technologies. By comparison, only one in four Africans had a bank account in 2013.

In reality, only 13% of the planet's population is born into the dollar, euro, Japanese yen, British pound, Australian dollar, Canadian dollar or Swiss franc. The other 87% are born into autocracies or much less trustworthy currencies. 4.3 billion people live under authoritarianism, and 1.2 billion people suffer double- or triple-digit inflation.

Alex Gladstein, CSO Human Right Foundation (HRF)

Infrastructure Moile Network

What is particularly impressive is the rapid growth of the mobile communications market. African countries have become mobile nations.

In some countries, more people have access to the mobile network than to clean water or electricity. Cell phones provide access to commerce, information, education, and politics in many regions.

Bitcoin as a Response to the Financial Crisis

Bitcoin was developed in 2009 in response to the financial crisis. It is a decentralized peer-to-peer payment system that enables transactions without third-party intermediation. Bitcoin is an open and permission-free system based on a secure and distributed database that makes transactions immutable and traceable.

> Learn more about the Bitcoin Whitepaper and how Bitcoin came to be.

Because of these characteristics, Bitcoin could play an important role in achieving financial inclusion.

Bitcoin is the first financial network to offer neutrality.

Andreas Antonopoulos

Bitcoin is Non-Discriminatory

Bitcoin doesn't care at all who you are. Bitcoin doesn't care where you come from, the color of your skin, your religion, your gender, your sexual orientation, or your political views. Bitcoin doesn't care how poor, rich, old or young you are. Bitcoin is for everyone.

The bitcoin network is permission free. You can use bitcoin anytime, from anywhere, for anything. No power in the world, such as a state, bank or company, can censor or reverse your transaction.

This has never happened before in the financial world, because access to the financial system is not open to everyone. Banks, states, and totalitarian regimes can deny or censor citizens from using the monetary system.

Bitcoin gives Sovereignty to the Individual

Another advantage of bitcoin is that it gives users some control over their money. The user can store their bitcoin funds in a Non-Custodial Wallet and does not have to use a bank or financial institution as a third party.

> Learn more about Non-Custodial Wallets and why these Types of Wallets are so important.

This means they are not at risk of bank failures or other geopolitical risks associated with traditional financial services.

Now we have a new reality where neither corporations nor governments control the money. This is quite remarkable.

Alex Gladstein, CSO Human Right Foundation (HRF)

Low Barrier to Entry for Individuals

Another key advantage of bitcoin is that it has a very low barrier to entry. Anyone with access to the Internet can buy, sell, and use Bitcoin permission-free. There are no restrictions on geographic location or social class.

This means that bitcoin can be invaluable to people (in developing countries) who do not have access to traditional financial services.

Cross-Border Payments

Bitcoin can also help reduce the cost of transferring money. Traditional financial services such as bank transfers or money transfers via Western Union can be very expensive, especially for people who only want to transfer small amounts.

Bitcoin transactions via Lightning network, on the other hand, are usually very cheap and can be processed in real time.

Bitcoin vs. Internet Adoption

Around the globe, people are adopting bitcoin faster than they previously adopted the Internet. Some of the countries with the highest adoption rates include developing countries such as Nigeria, Zimbabwe, Turkey, Venezuela, and Vietnam.


Overall, bitcoin offers the potential to promote financial inclusion, especially in developing countries. However, there are challenges that must be addressed before Bitcoin can be considered a reliable alternative to traditional financial services.

Spread the knowledge

If you liked this content, make sure to share it with your friends. If you think there's something missing here, send us a quick message.


Congratulations! ๐Ÿฅณ

Your bank payment arrived and was successfully exchanged into bitcoin.

Your bitcoin are soon on the way to your Bitcoin wallet.

Bitcoin purchase

Bank payment:EUR 100.00

Purchased:BTC 0.00435850

Exchange rate:EUR 22,599.90 / BTC