An Empirical Analysis of Block Chain Technology's Impact on Financial Inclusion in Developing Economies

Veereedhi V. Deepika; A.V.N. Murty; Gaurav Kumar; Ramesh Safare; Nihar Ranjan Agasti; Ashok Kumar Dash

doi:10.14505/tpref.v17.1(37).21

Veereedhi V. Deepika KLEF Business School, Koneru Lakshmaiah Education Foundation, KL University, India https://orcid.org/0000-0001-6053-714X
A.V.N. Murty KLEF Business School, Koneru Lakshmaiah Education Foundation, KL University, India https://orcid.org/0000-0002-5232-2226
Gaurav Kumar School of Liberal Arts and Management Studies, P. P. Savani University, India https://orcid.org/0000-0002-1800-3213
Ramesh Safare Faculty of Management Studies, Marwadi University, India https://orcid.org/0000-0001-5045-6338
Nihar Ranjan Agasti Department of Management, Medicaps University, India https://orcid.org/0000-0001-6876-5833
Ashok Kumar Dash Department of Business Administration, Ravenshaw University, India https://orcid.org/0000-0002-1233-5102

DOI: https://doi.org/10.14505/tpref.v17.1(37).21

Abstract

This study examines the influence of block chain technology on financial inclusion in India from 2020 to 2025. Employing the Generalized Method of Moments (GMM) model, we analyse the relationship between block chain adoption and financial inclusion in developing nation like India, controlling for macroeconomic variables such as GDP, GDP per capita, foreign direct investment (FDI), trade openness, and institutional factors like the rule of law. The findings reveal that block chain technology has a positive and significant impact on financial inclusion, indicating that block chain innovation enhances financial accessibility and growth. However, the institutional variable, government effectiveness, does not show a considerable influence. These results underscore the role of block chain technology in promoting financial inclusion and economic development in developing economies.

References

Carè, R., Boitan, I. A., Stoian, A. M., & Fatima, R. (2025). Exploring the landscape of financial inclusion through the lens of financial technologies: A review. Finance Research Letters, 72, 106500. https://doi.org/10.1016/j.frl.2024.106500
Ha, D., Le, P., & Nguyen, D. K. (2025). Financial inclusion and fintech: A state-of-the-art systematic literature review. Financial Innovation, 11(1), 69. https://doi.org/10.1186/s40854-024-00741-0
Hoque, M. M., Kummer, T.-F., & Yigitbasioglu, O. (2024). How can blockchain-based lending platforms support microcredit activities in developing countries? An empirical validation of its opportunities and challenges. Technological Forecasting and Social Change, 203, 123400. https://doi.org/10.1016/j.techfore.2024.123400
Jena, R. K. (2022). Examining the factors affecting the adoption of blockchain technology in the banking sector: An extended UTAUT model. International Journal of Financial Studies, 10(4), 90. https://doi.org/10.3390/ijfs10040090
J. J. V., Sharma, D., & Singh, N. K. (2019). Analysing the impact of blockchain technology in India’s digital economy. Global Journal of Enterprise Information System, 11(1), 94–99. https://gjeis.com/index.php/GJEIS/article/view/44
Kim, H. M., Ghiasi, B., Spear, M., Laskowski, M., & Li, J. (2017). Online serendipity: The case for curated recommender systems. Business Horizons, 60(5), 613–620. https://doi.org/10.1016/j.bushor.2017.05.005
Kshetri, N. (2017). Blockchain’s roles in strengthening cybersecurity and protecting privacy. Telecommunications Policy, 41(10), 1027–1038. https://doi.org/10.1016/j.telpol.2017.09.003
Kshetri, N. (2018). Blockchain’s roles in meeting key supply chain management objectives. International Journal of Information Management, 39, 80–89. https://doi.org/10.1016/j.ijinfomgt.2017.12.005
Lye, C.-T., Tay, L.-Y., Ng, T.-H., & Ahmad-Nazmi, A. N. (2025). A systematic literature review of fintech, financial inclusion and vulnerable groups. Discover Sustainability, 6(1), 1467. https://doi.org/10.1007/s43621-025-02368-2
Marak, N. R., & Ayyagari, L. R. (2025). Artificial intelligence for financial inclusion and sustainable development: A systematic literature review. Discover Artificial Intelligence, 5(1), 390. https://doi.org/10.1007/s44163-025-00668-0
Mavilia, R., & Pisani, R. (2020). Blockchain and catching-up in developing countries: The case of financial inclusion in Africa. African Journal of Science, Technology, Innovation and Development, 12(2), 151–163. https://doi.org/10.1080/20421338.2019.1624009
Mbaidin, H. O., Alsmairat, M. A. K., & Al-Adaileh, R. (2023). Blockchain adoption for sustainable development in developing countries: Challenges and opportunities in the banking sector. International Journal of Information Management Data Insights, 3(2), 100199. https://doi.org/10.1016/j.jjimei.2023.100199
Merry, A. (2018). Block chain. TIME.
Mhlanga, D. (2023). Blockchain technology for digital financial inclusion in the industry 4.0: Towards sustainable development? Frontiers in Blockchain, 6. https://doi.org/10.3389/fbloc.2023.1035405
Olaniyi, C. O., & Odhiambo, N. M. (2023). Does institutional quality matter in the financial development–economic complexity nexus? Empirical insights from Africa. Research in Globalization, 7, 100173. https://doi.org/10.1016/j.resglo.2023.100173
Ozili, P. K. (2019). Blockchain finance: Questions regulators ask. International Journal of Accounting & Information Management, 123–129. https://doi.org/10.1108/S1569-376720190000020014
Queiroz, M. M., & Fosso Wamba, S. (2019). Blockchain adoption challenges in supply chain: An empirical investigation of the main drivers in India and the USA. International Journal of Information Management, 46, 70–82. https://doi.org/10.1016/j.ijinfomgt.2018.11.021
Rahman, J., Rahman, H., Islam, N., Tanchangya, T., Ridwan, M., & Ali, M. (2025). Regulatory landscape of blockchain assets: Analyzing the drivers of NFT and cryptocurrency regulation. BenchCouncil Transactions on Benchmarks, Standards and Evaluations, 5(1), 100214. https://doi.org/10.1016/j.tbench.2025.100214
Roy, J. K., & Vasa, L. (2025). Financial technology and environmental, social and governance in sustainable finance: A bibliometric and thematic content analysis. Discover Sustainability, 6(1), 148. https://doi.org/10.1007/s43621-025-00934-2
Schuetz, S., & Venkatesh, V. (2020). Blockchain, adoption, and financial inclusion in India: Research opportunities. International Journal of Information Management, 52, 101936. https://doi.org/10.1016/j.ijinfomgt.2019.04.009
Secinaro, S., Lanzalonga, F., Oppioli, M., & de Nuccio, E. (2025). The effects of disruptive technologies on accountability in fintech industry: Using bibliometric analysis to develop a research agenda. Research in International Business and Finance, 76, 102816. https://doi.org/10.1016/j.ribaf.2025.102816
Sharma, J. (2023). Blockchain technology adoption in financial services. https://doi.org/10.4018/978-1-6684-8624-5.ch007
Vasishta, P., Dhiman, A., Smith, S., & Singla, A. (2025). How can DeFi improve the quality, affordability, access and usage of financial services? A systematic literature review. Journal of Economic and Administrative Sciences. https://doi.org/10.1108/JEAS-07-2024-0243