Blockchain for Financial Identity in Developing Nations

Sri Watini; Ora Plane Maria Daeli; Syahyono Syahyono; Ramzi Zainum Ikhsan; Oliver Sauntos

Authors

Sri Watini University of Panca Sakti Bekasi https://orcid.org/0000-0002-7757-0656
Ora Plane Maria Daeli University of Raharja https://orcid.org/0009-0005-5707-9332
Syahyono Syahyono Universitas Islam 45 Bekasi
Ramzi Zainum Ikhsan Alfabet Inkubator Group https://orcid.org/0009-0005-2253-6476
Oliver Sauntos Pandawan Incorporation

Keywords:

Blockchain, Self-Sovereign Identity, Financial Inclusion, Digital Identity, Developing Nations

Abstract

The absence of formal financial identity remains a major barrier to financial inclusion in developing nations. Existing centralized identity systems are often vulnerable to fraud, data breaches, and third-party control, leading to low public trust and limited access to financial services. Blockchain technology offers a decentralized alternative through the concept of Self-Sovereign Identity (SSI), which enables individuals to own and control their personal data securely. This study aims to examine how blockchain-based identity systems can address the weaknesses of traditional identity frameworks and to identify the key technical and social challenges in their implementation within developing economies. Using a qualitative, case study-based approach, the research analyzes several blockchain-driven digital identity projects across diverse regions. The findings indicate that blockchain-enabled SSI improves data security, transparency, and user trust, while enhancing access to financial services. However, challenges related to infrastructure limitations, scalability, and regulatory uncertainty re- main significant obstacles. Overall, blockchain has the potential to serve as a foundational technology for creating inclusive, secure, and sustainable financial identity systems in developing nations, while offering practical insights for policymakers, regulators, and financial institutions worldwide.

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