Can fintech bridge the inequality gap
We know Silicon Valley likes to think it is making the world a better place. So it is no surprise that Facebook wanted to ram home the message that Libra, its digital stablecoin, is going to help the world’s poor. From the White Paper:
Our journey is just beginning, and we are asking the community to help. If you believe in what Libra could do for billions of people around the world, share your perspective and join in. Your feedback is needed to make financial inclusion a reality for people everywhere.
Setting aside our cynicism about the nobleness of Libra’s aims for a moment, the view that fintech — that is the digitalisation of financial services — has aided financial inclusion is well founded. M-Pesa, a mobile payments technology has given millions in east Africa access to basic financial services. IndiaStack has more recently done a similar thing for people in the world’s second most populous nation.
But it isn’t the whole story, as highlighted by a collection of remarks published earlier this week by the Bank for International Settlements assessing the welfare implications of digital innovation.
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