How can DeFi help people in third world countries, specially where there is currency exchange control, as well as other distortions, of economic...

NOTE: The full length of the title is: "How can DeFi help people in third world countries, specially where there is currency exchange control, as well as other distortions, of economic and other types".

Since the disruption of Decentralized Finance, DeFi, from Traditional Finance, TradFi, or Centralized Finance, CeFi, there have been an increase in the number of users from all over the world.

Following is a list of benefits that DeFi gives for people in third world countries in general:

1. Increased financial inclusion:?DeFi can help to increase financial inclusion by providing access to financial services to people who are currently excluded from the traditional financial system. This includes people who are unbanked or underbanked, as well as people who live in rural areas or remote communities.
2. Reduced cost of financial services:?DeFi can help to reduce the cost of financial services by eliminating the need for intermediaries, such as banks and financial institutions. This can make financial services more affordable for people in third world countries, where the cost of living is often high.
3. Improved speed and efficiency of financial transactions:?DeFi transactions can be processed more quickly and efficiently than traditional financial transactions. This is because DeFi transactions are processed on a blockchain, which is a distributed ledger that is secure and transparent.
4. Increased transparency:?DeFi transactions are recorded on a blockchain, which is a public ledger that is transparent to everyone. This can help to reduce corruption and fraud in the financial system.
5. Increased security:?DeFi transactions are secured by cryptography, which makes them very secure. This can help to protect users from fraud and theft.
6. Global reach:?DeFi is not subject to geographical restrictions, which means that it can be used by people all over the world. This can be a benefit for people in third world countries, who may not have access to traditional financial services in their own country.
7. Portability:?DeFi assets can be easily transferred from one platform to another. This can be a benefit for people who want to move their money around or who want to access financial services in different countries.
8. Scalability:?DeFi is a scalable technology, which means that it can be used to support a large number of users and transactions. This can be a benefit for third world countries, where the population is growing rapidly.
9. Innovation:?DeFi is a new and rapidly evolving technology, which means that there is a lot of innovation happening in this space. This can lead to the development of new financial products and services that can benefit people in third world countries.
10. Democratization of finance:?DeFi can help to democratize finance by giving people more control over their own money. This can be a benefit for people in third world countries, who may not have access to traditional financial services.
11. Protection from inflation:?DeFi assets, such as cryptocurrencies, can be a hedge against inflation. This is because the value of cryptocurrencies is not tied to any particular country's currency, so they are not affected by inflation in that country.
12. Access to foreign currencies:?DeFi can be used to circumvent currency exchange control and access foreign currencies. This can be a benefit for people in countries with strict currency controls.
13. Opportunities for investment:?DeFi offers a variety of investment opportunities, such as decentralized exchanges, lending platforms, and insurance products. This can be a way for people in third world countries to grow their wealth and improve their financial situation.
14. Disruption of traditional financial system:?DeFi has the potential to disrupt the traditional financial system. This could lead to lower fees, better services, and more innovation in the financial sector.
15. Reduced fees:?DeFi platforms typically charge lower fees than traditional financial institutions. This is because DeFi platforms do not need to cover the costs of operating a physical branch network or complying with regulations.
16. Faster processing:?DeFi transactions are processed on a blockchain, which is a distributed ledger that is secure and transparent. This can make cross-border payments faster than traditional methods, which can take several days to clear.
17. No currency conversion fees:?DeFi platforms typically allow users to make cross-border payments in the same currency, which eliminates the need for currency conversion fees.
18. Greater transparency:?DeFi transactions are recorded on a blockchain, which is a public ledger that is transparent to everyone. This can help to reduce fraud and corruption in the cross-border payments system.

If in a given third world country there are concurrent economic distortions, as well as social and political among others, then the situation complicates as being in such environment most likely would be extremely difficult to work, trade, else, using DeFi. ?

By concurrent distortions mentioned above, it is meant: hyperinflation, hyper devaluation, monetary exchange control, minimum wages earned by almost everyone, monthly wages in being a single digit in US dollars, constant long cuts of electricity, water and internet, huge corruption and lines to get a few liters of gasoline, supervening hidden charges from diverse official and else to get some errands done, begging to local regime personnel to get cylinder of cooking gas for there is no other way to get them, and much more things not even thought about, that occurs and have to be done, by people in the free world not even think happens, unless ?it is in an imaginary or bizarre world.

The talent of people in such toxic environments would be maximized and used by companies and other businesses, research, academic or think tank institutions, else. So, it would be beneficial for all, if those people got to be relocated in the free world.

Frankfurt School of Finance & Management Philipp Sandner Dominik Peer Emilio Barbieri Katharina Zeuch Alexandra Overgaag Isabell Welpe ?? Jong-Chan Chung Paul Müller-Berghaus ????Marcel Grimm Manuel Müller Masud Sultan Cedric Heidt Dr. Constantin Lichti Marc Anders Daniel Holk

ABOUT THE AUTHOR

Vrikson Acosta is a digitalization consultant in Web3 (DLT, BTC, NFT, DeFi), digital (literacy, governance, security), data protection, and his profile can be found at?https://linkedin.com/in/vrikson-acosta