Financial Inclusion
Access to affordable financial services for underserved populations via digital means.
What is Financial Inclusion?
Financial inclusion reaches 1.7 billion unbanked globally through tools like mobile banking and CBDCs, with examples including India’s UPI serving 300 million users. CBDCs like e-CNY enable wallet openings without bank accounts, targeting elderly and rural users with offline features.
In digital assets, it fosters DeFi access, reducing costs by 20-30% for remittances, as seen in Bahamas’ Sand Dollar for unbanked islands. Over 100 countries explore CBDCs for this, closing gender gaps in account ownership.
Related Terms
Block and Block Height
A block is a collection of transactions recorded on a blockchain, and block height is the sequential number of a block in the chain, starting from the genesis block.
Funding Rate
A periodic fee exchanged between long and short traders to balance market positions.
Gas Limit of a Transaction
The maximum amount of gas a user is willing to spend on an Ethereum transaction.
State Machine
A computational model where the blockchain maintains and updates a global state based on transactions.
Concentrated Liquidity
A DeFi mechanism allowing liquidity providers to allocate capital within specific price ranges for higher efficiency.
Overcollateralization
A requirement for borrowers to deposit collateral worth more than the loan amount to mitigate risk.