Displacement and suffering due to conflict, persecution, and other crises affect millions of people globally. The United Nations High Commissioner for Refugees (UNHCR) estimates that, as of 2023, 117.2 million people globally have been forcibly displaced or been made stateless.
The financial exclusion of displaced populations has long been recognised as a particularly complex issue for policy makers to address.
During times of diaspora and displacement, ethnically concentrated communities in host countries act as support networks, offering economic opportunities and social stability for those starting anew in a different country or city.
In emerging markets and developing economies (EMDEs), MSMEs account on average for some 78% of employment.
While, in general terms, access to financial services including payments and lending via mobile and digital technologies has grown in recent years, availability varies by country and can, in emerging economies, often rely on legacy infrastructures which can be difficult to access and prone to disruption.
Innovative blockchain-based solutions, including digital assets like Bitcoin and stablecoins, can alleviate these difficulties because they do not rely on legacy financial market infrastructure. Solutions built on novel distributed ledger technology allow them to offer more reliable, affordable, and accessible solutions for displaced entrepreneurs. In the digital assets space, self-custody (i.e. through self-hosted wallets) enables safe cross-border storage and access to assets, empowering individuals and MSMEs to control their funds during conflicts or emergencies without needing physical banks or cash.
These solutions have the potential to improve economic security, inclusion, mobility and empowerment for displaced communities and their businesses globally. However, some of the barriers to further take-up of these technologies include regulatory issues, financial education, and connectivity. To that end, public-private partnerships can help these technologies be more widely deployed by helping address some of the barriers to their broader use.
Initiatives for further consideration include:
Improving financial and digital literacy to increase understanding and trust in emerging technology solutions and services
Supporting the further development of digital financial infrastructure including broadband internet, mobile telecommunications networks, data centres and computer networks
Expanding the availability of technology and technological expertise to MSMEs by developing digital hubs and facilitating training
Ensuring that appropriate regulatory frameworks are in place
Displacement and suffering due to conflict, persecution, and other crises affect millions of people globally. The United Nations High Commissioner for Refugees (UNHCR) estimates that, as of 2023, 117.2 million people globally have been forcibly displaced or been made stateless.
The financial exclusion of displaced populations has long been recognised as a particularly complex issue for policy makers to address.
During times of diaspora and displacement, ethnically concentrated communities in host countries act as support networks, offering economic opportunities and social stability for those starting anew in a different country or city.
In emerging markets and developing economies (EMDEs), MSMEs account on average for some 78% of employment.
While, in general terms, access to financial services including payments and lending via mobile and digital technologies has grown in recent years, availability varies by country and can, in emerging economies, often rely on legacy infrastructures which can be difficult to access and prone to disruption.
Innovative blockchain-based solutions, including digital assets like Bitcoin and stablecoins, can alleviate these difficulties because they do not rely on legacy financial market infrastructure. Solutions built on novel distributed ledger technology allow them to offer more reliable, affordable, and accessible solutions for displaced entrepreneurs. In the digital assets space, self-custody (i.e. through self-hosted wallets) enables safe cross-border storage and access to assets, empowering individuals and MSMEs to control their funds during conflicts or emergencies without needing physical banks or cash.
These solutions have the potential to improve economic security, inclusion, mobility and empowerment for displaced communities and their businesses globally. However, some of the barriers to further take-up of these technologies include regulatory issues, financial education, and connectivity. To that end, public-private partnerships can help these technologies be more widely deployed by helping address some of the barriers to their broader use.
Initiatives for further consideration include:
Improving financial and digital literacy to increase understanding and trust in emerging technology solutions and services
Supporting the further development of digital financial infrastructure including broadband internet, mobile telecommunications networks, data centres and computer networks
Expanding the availability of technology and technological expertise to MSMEs by developing digital hubs and facilitating training
Ensuring that appropriate regulatory frameworks are in place