Can DeFi Solve Global Remittance Issues?
Can DeFi Solve Global Remittance Issues?! Global remittances play a vital role in supporting economies, particularly in developing countries where many rely on funds sent from overseas workers. However, traditional remittance systems are plagued by inefficiencies, including high fees, slow transaction speeds, and limited accessibility, especially for the unbanked. Decentralized Finance (DeFi) offers a new approach to addressing these pain points, leveraging blockchain technology to provide faster, cheaper, and more inclusive solutions. But can DeFi truly solve the global remittance problem? The Traditional Remittance System’s Shortcomings The current remittance landscape, dominated by legacy players like Western Union and MoneyGram, is characterized by high transaction fees that can range between 5% to 10% of the amount being sent. Additionally, transactions can take days to process, especially when crossing multiple borders. These inefficiencies disproportionately affect low-income in...