Over the past decade, blockchain has frequently been positioned as a transformative technology for emerging markets - regions where financial infrastructure, governance systems, and data transparency remain underdeveloped. From financial inclusion to supply chain transparency, blockchain promises to solve long-standing structural issues. However, amid growing media attention and rapid project proliferation, a critical question emerges: is blockchain delivering real value in emerging markets, or is it largely an overhyped narrative?

Why blockchain resonates with emerging markets

Emerging economies often face systemic challenges such as high transaction costs, fragmented trust systems, limited access to financial services, and inefficient intermediaries. Blockchain’s core attributes - decentralization, immutability and transparency - appear well-suited to address these pain points.

In practice, blockchain has demonstrated tangible value in specific areas such as cross-border payments, agricultural traceability and digital identity. These are domains where traditional systems struggle with cost, speed or trust, making blockchain a potentially superior alternative.

The gap between potential and execution

Despite its promise, the majority of blockchain initiatives in emerging markets fail to scale beyond pilot stages. The root cause is rarely technological. Instead, projects often suffer from weak legal frameworks, limited technical talent and a lack of coordination between public and private stakeholders.

Many initiatives adopt blockchain as a solution in search of a problem, rather than addressing a clearly defined economic need. As a result, blockchain is perceived as visible yet ineffective - widely discussed, but narrowly impactful.

Southeast Asia and Vietnam: a reality check

Southeast Asia ranks among the highest regions in crypto and blockchain adoption, yet most activity remains speculative rather than infrastructural. In Vietnam, blockchain is commonly associated with startups and Web3 experimentation, while integration into public services, logistics or core financial systems remains limited.

This suggests that blockchain has yet to become embedded within the real economy, functioning instead as a parallel innovation layer.

Is blockchain truly suitable for emerging markets?

Blockchain is not a universal remedy. Its value emerges only when trust, data integrity, and intermediaries represent structural bottlenecks. Replacing an already functional system with blockchain rarely delivers sufficient return to justify the cost and complexity.

Conclusion

Blockchain represents a genuine opportunity for emerging markets - but only when applied selectively, grounded in real economic needs and supported by institutional readiness. Without these conditions, the technology risks remaining more narrative than substance.