034 – One of the biggest challenges facing developing countries and vulnerable communities is financial inclusion. According to the World Bank, over 1.7 billion adults worldwide do not have access to a bank account. This lack of access to financial services can have a devastating impact on people’s lives, making it difficult to save, borrow, and invest.
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DeFi can help to address this problem by providing people with access to financial services without the need for a bank. DeFi platforms allow people to send and receive money, lend and borrow, and invest in a variety of assets, all without the need for a third party. This can make a real difference in the lives of people who are currently excluded from the financial system.
Another way that DeFi can help developing countries is by reducing the cost of remittances. Remittances are the money that migrant workers send back to their home countries. They are a vital source of income for many families in developing countries, but the cost of sending remittances can be high.
DeFi can help to reduce the cost of remittances by providing a cheaper and faster way to send money. For example, the average cost of sending a remittance through a traditional bank is around 7%. However, the cost of sending a remittance through a DeFi platform can be as low as 1%. This can save families a significant amount of money, which can be used to improve their lives.
DeFi can also help to boost trade in developing countries. Trade is essential for economic growth, but it can be difficult for businesses in developing countries to access international markets. DeFi can help to overcome this challenge by providing businesses with a way to trade with each other without the need for a third party.
For example, a business in a developing country could use DeFi to trade with a business in a developed country. This would allow the businesses to trade directly with each other, without the need for a bank or other financial institution. This can save businesses time and money, and it can also help to boost trade between developing and developed countries.
DeFi has the potential to make a real difference in the lives of people in developing countries and vulnerable communities. By providing access to financial services, reducing the cost of remittances, and boosting trade, DeFi can help to improve the lives of millions of people around the world.
If you are interested in learning more about how DeFi can help developing countries and vulnerable communities, I encourage you to do some research. There are a number of resources available online that can provide you with more information. I also encourage you to support organizations that are working to use DeFi to make a positive impact on the world.