Implications of NFT as a sustainable fintech innovation for sustainable development and entrepreneurship

Abstract

This study explores the global patterns of non-fungible token (NFT) equity funding, focusing on NFTs’ role as a sustainable financial technology (fintech) in promoting the United Nations’ sustainable development goals (SDGs) as well as entrepreneurship and in balancing business growth with social impact. Utilizing descriptive tools and the Wilcoxon rank-sum (Mann–Whitney) test, we analyze global and regional data from 2015 to 2021 to examine NFT funding flows. The results show that funding flows from 2015 to 2021 exhibit notable differences and that funding flows in the United States (US) and Europe differ significantly from those in Latin America and the rest of the world (regions other than the US, Asia, Europe, Latin America, and Canada). Furthermore, using a narrative literature review, we determine that NFT-funded projects support achieving the SDGs (including decent work and economic growth; climate action; peace, justice, and strong institutions; quality education; partnerships for the goals; and industry, innovation, and infrastructure), fighting against hunger and poverty, promoting human well-being, facilitating financial inclusion, and reducing gender gaps, thereby ensuring business growth aligning with social benefits. However, technological barriers, negative environmental impacts, insufficient regulations, unequal benefit distribution, and social distrust may obstruct NFT innovation.