Why blockchain’s future lies outside the West

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This post is a guest contribution by George Siosi Samuels, managing director at Faiā. See how Faiā is committed to staying at the forefront of technological advancements here.

Blockchain technology, once heralded as a revolutionary force in the Western world, has seen its most significant adoption in developed economies like the United States, Europe, and parts of East Asia. However, as these markets mature and regulatory frameworks tighten, the growth trajectory of blockchain is beginning to plateau in the West. Meanwhile, emerging markets—regions like Africa, Southeast Asia, and the Middle East—are quietly positioning themselves as the next frontier for blockchain innovation.

These regions are not only ripe for disruption but also uniquely equipped to leapfrog traditional systems by embracing decentralized technologies.

The thesis of this article is clear: the future of blockchain lies outside the West. Non-Western markets offer untapped potential due to their growing populations, increasing digital connectivity, and pressing need for solutions to systemic challenges such as financial inclusion, supply chain inefficiencies, and governance transparency. Entrepreneurs and professionals serving large enterprises and governments must shift their focus to these regions if they wish to remain at the forefront of technological innovation. By exploring how emerging markets can benefit from blockchain, drawing lessons from other sectors like artificial intelligence (AI), examining successful case studies, and strategizing for inclusive leadership, we can unlock the transformative power of blockchain on a global scale.

The untapped potential of non-Western markets for blockchain adoption

Emerging markets present an unparalleled opportunity for blockchain adoption due to several key factors differentiating them from their Western counterparts. First, many of these regions lack entrenched legacy systems, often hindering innovation in developed countries. For example, while Western banks have spent decades building centralized financial infrastructures, emerging markets are more open to adopting decentralized alternatives that bypass these outdated systems entirely. This absence of legacy infrastructure allows blockchain solutions to be implemented without costly overhauls or compatibility issues.

Second, there is a growing demand for transparent and secure digital systems in non-Western markets. In countries where corruption, fraud, and inefficiency plague public institutions, blockchain offers a way to restore trust through immutable ledgers and smart contracts. For instance, land registries in India and Kenya have already begun experimenting with blockchain to prevent fraudulent property transactions. Similarly, governments in the Middle East are leveraging blockchain for everything from voting systems to healthcare records, ensuring data integrity and accountability.

Third, institutional support plays a crucial role in driving blockchain adoption. Unlike some Western nations, where regulatory uncertainty has slowed progress, many emerging market governments actively encourage blockchain initiatives. The United Arab Emirates’ Smart Dubai project, for example, aims to make Dubai the world’s first fully blockchain-powered city by 2030. Such ambitious goals demonstrate the willingness of non-Western leaders to embrace cutting-edge technologies and create enabling environments for innovation.

Finally, demographic trends favor blockchain adoption in these regions. With young, tech-savvy populations eager to adopt new tools and platforms, emerging markets represent fertile ground for experimentation. As mobile penetration rates continue to rise, so does access to blockchain-enabled applications, making it easier than ever to reach underserved communities.

How emerging markets can benefit from blockchain

To understand why blockchain holds such promise for emerging markets, let us examine three specific regions—Africa, Southeast Asia, and the Middle East—and explore how each stands to gain from adopting this transformative technology.

Africa: Addressing financial inclusion and supply chain transparency

Africa faces significant challenges related to financial inclusion, with millions of people lacking access to basic banking services. Traditional financial institutions have struggled to serve rural populations due to high operational costs and logistical barriers.

Enter blockchain-based solutions like M-Pesa, a mobile payment platform used extensively in Kenya. By integrating blockchain into its operations, M-Pesa has enhanced security, reduced transaction fees, and expanded its user base across East Africa.

Beyond finance, blockchain is also being deployed to improve supply chain transparency. In agriculture-dependent economies like Nigeria and Ghana, farmers often struggle to receive fair prices for their crops due to opaque pricing mechanisms. Blockchain-powered platforms now allow farmers to track their produce from farm to market, ensuring they receive equitable compensation while giving consumers confidence in the authenticity of their purchases.

Southeast Asia: Fostering Decentralized Finance (DeFi) ecosystems

Southeast Asia is home to one of the fastest-growing fintech ecosystems in the world, driven by rising Internet penetration and a burgeoning middle class. Yet, traditional banking remains inaccessible to large segments of the population. Here, decentralized finance (DeFi) powered by blockchain offers a compelling alternative. Platforms like Coinhako in Singapore and Pundi X in Indonesia enable users to access loans, savings accounts, and investment opportunities without relying on centralized intermediaries.

Moreover, blockchain is helping combat counterfeiting—a pervasive issue in the region’s manufacturing sector. For example, luxury goods companies in Thailand and Vietnam use blockchain to verify product authenticity, protecting brands and consumers from fraud.

Middle East: Revolutionizing public sector efficiency

Lessons from the AI Space: Non-Western regions outpacing the West

The rapid advancements in AI provide valuable insights into how non-Western regions can outpace the West in blockchain adoption. Consider China’s dominance in AI research and development. Chinese models like Baidu’s (NASDAQ: BIDU) ERNIE and Alibaba’s (NASDAQ: BABAF) M6 have consistently outperformed their U.S. counterparts in benchmarks for natural language processing (NLP). This success stems from strategic investments in AI infrastructure, robust government backing, and a culture of experimentation unencumbered by legacy constraints.

Similarly, blockchain entrepreneurs should heed Wayne Gretzky’s famous advice: “Skate to where the puck is going, not where it has been.” While Western markets remain saturated with competitors vying for diminishing returns, emerging markets represent untapped opportunities waiting to be seized. By focusing efforts on regions like Africa, Southeast Asia, and the Middle East, innovators can position themselves ahead of the curve, capitalizing on early-mover advantages and establishing strong footholds before others catch up.

Case studies of successful blockchain adoption in non-Western regions

Real-world examples underscore the potential of blockchain in emerging markets. Below are three notable case studies:

Kenya: M-Pesa and blockchain integration

M-Pesa revolutionized mobile payments in Kenya by providing millions of unbanked individuals affordable financial services. Recently, the platform integrated blockchain to enhance security and reduce transaction costs further. This move strengthened user trust and expanded M-Pesa’s reach into neighboring countries like Tanzania and Uganda.

India: AgriLedger empowering farmers

AgriLedger, a blockchain-based platform, connects Indian farmers directly with buyers, cutting out middlemen who previously exploited price discrepancies. By recording every step of the supply chain on an immutable ledger, AgriLedger ensures transparency and fairness, empowering farmers economically while boosting consumer confidence.

Dubai: Trade finance transformation

Dubai’s Department of Economic Development partnered with IBM (NASDAQ: IBM) to launch a blockchain-powered trade finance platform. The system reduces document processing times from days to mere minutes, saving businesses millions in operational costs while improving cross-border trade efficiency.

These examples highlight the versatility of blockchain in addressing diverse challenges, from financial inclusion to supply chain optimization.

Strategies for diversifying leadership to better serve these markets

For blockchain solutions to succeed in non-Western markets, leadership teams must reflect the diversity of the regions they aim to serve. Building culturally competent teams with deep regional expertise is essential for avoiding misalignment with local needs.

Additionally, fostering partnerships with local stakeholders—including businesses, governments, and community organizations—can help build trust and ensure relevance.

Another critical strategy is training programs tailored to the unique challenges faced by professionals in these markets. For example, workshops on navigating regulatory landscapes or designing user-friendly interfaces for low-literacy populations can equip teams with the skills needed to thrive in unfamiliar contexts.

Challenges and opportunities ahead

While the potential for blockchain in emerging markets is immense, challenges remain. Regulatory uncertainty, technological literacy gaps, and resistance to change pose significant hurdles. However, by learning from past successes in other industries and adopting flexible, adaptive strategies, entrepreneurs can overcome these obstacles and unlock the full potential of blockchain.

Conclusion

The future of blockchain lies outside the West. By shifting focus to emerging markets, entrepreneurs and professionals can tap into unprecedented opportunities for growth and impact. Whether addressing financial inclusion in Africa, fostering DeFi ecosystems in Southeast Asia, or transforming public sector efficiency in the Middle East, blockchain can drive meaningful global change. The question is no longer whether blockchain will shape the future—it’s where you choose to be when it happens. Will you follow the crowd or skate to where the puck is going?

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