Advocacy group proposes DeFi solutions to address global poverty

The DeFi Education Fund estimated that decentralized finance technology could potentially save people up to $30 billion annually by reducing remittance costs.

The DeFi Education Fund, an advocacy organization focused on decentralized finance, has proposed utilizing the technology to reduce costs, aiming to address poverty in the United States and globally.

In a Wednesday blog post, the group said DeFi infrastructure could potentially save unbanked and underbanked people around the world about $30 billion annually through reducing remittance costs. The organization cited examples of workers sending funds home and paying fees to do so, which could be reduced “by up to 80%” with DeFi.

“The poverty premium [the expenses incurred by low-income households that wealthier individuals are often able to access at a lower cost] persists because the current, layered, antiquated financial infrastructure makes it expensive to serve low-income customers profitably,” said the DeFi Education Fund, adding:

Read more