Stellar, PwC Publish ‘Framework’ For Blockchain
Stellar and PwC have proposed a framework to assess the success of financial inclusion projects. The framework consists of four parameters: access, quality, trust, and usage. These parameters are further broken down into sub-parameters, such as affordability, connectivity, and ease of initiation. Each sub-parameter is measured using a proposed method, such as listing “# of CICO [cash in/cash out] locations within relevant target population region” as a way of measuring “connectivity” metric. The aim is to ensure projects can scientifically measure their effectiveness, rather than relying on guesswork, to ensure successful implementation of financial inclusion projects.
The teams propose a four-phase assessment process for financial inclusion projects. The first phase identifies a solution, target population, and jurisdiction. The second phase identifies barriers to financial services. The third phase uses level charts and guidance to identify major obstacles. The final phase prioritizes key parameters for efficient use of funds.
The teams identified two blockchain solutions that have effectively enhanced financial inclusion. The first is payments. Traditional financial apps charge an average of 2.7-3.5% to send money between the US and the studied market, while blockchain-based solutions charge 1% or less. These applications increase access by making electronic payments available to those who couldn’t afford them.
(With inputs from Shikha Singh)
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