Role of decentralized finance in developing countries

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Many countries today which are still hugely under developed could really benefit from decentralized finance, indeed some live in lands where the presence of enough financial infrastructure needed to participate in global economy and finance in general is lacking and that due to the fact they are not readily available and their countries lack the technological innovation needed to put this in place.

Many countries of the world greatly suffering from lack of infrastructure we have many third world country lacking any real technological advancement and this puts them behind indeed and it is such countries that decentralized finance could really help a great deal.

A country that behind could leverage on decentralized finance to still enjoy unlimited and easily accessible financial services, yes defi really has got good potential to help out especially to improve undeveloped countries to be able included in world's finance and they are are ways that defi could do this which makes me believe that they have mad potential and this I will like to share in my article today.

How defi could impact this regions include;

Access to Global Markets

It could really provide people in under developed countries with access to global markets they could be willing participants in the global market and invest in and asset and this is only made possible through defi and this is something that ordinarily that could never have because if they were to depend on the traditional market or the local markets then they wouldn't be able to so decentralized finance gives to free access to the global markets to invest in and have an opportunity to make revenues from such investment.

That is one of the beauty and good side of decentralized finance to those in developing countries as all have opportunity to diversify their portfolio from the limitless opportunity defi provides and a free rein and equal participation in the global markets without lack technological infrastructures acting as a barrier

Not only do they have investment opportunity but defi also offers a real chance of tokenization to such ones, whatever you want any asset or commodity you name it and it could easily be tokenized be it land or art or any such commodity and with it tokenized defi allows them to own them things that otherwise they wouldn't have the privilege to so indeed that's one of the potential defi has I believe to help developing countries.

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Empowering Small Businesses

Those who own small businesses too in this developing countries could potentially benefit with the introduction of defi as many businesses close down or even suffer to grow due to one very common and persistent issue which is capital, many who owns this small businesses doesn't have access to capital and hence it limits their ability to run their business effectively.

But with defi small businesses could obtain this capital they so desperately needs to grow their business which was otherwise denied them even by their local banks but with defi entrepreneurs could get microloans depending on the nature and size of your business to help grow your business and what this does eventually is this small businesses could grow amd with it spur economic growth in a place and this could be made possible by decentralized finance coming into play with it's full wonderful innovative capability.

And with defi it makes it so much easier for small business to operate a business that's secure and transparent as it will utilize blockchain smart contract for business agreement and these will ensure the integrity of this small businesses helping it grow in time which is why defi should be readily accepted in many developing countries.

Hedge Against Local Currency Volatility

Also with decentralized finance in developing countries it could help alot provides them with a hedge, ofcourse we know most developing countries have a failing economy where the currency keeps reducing with constant inflation battle and a volatile currency, currency which makes them lose the value against other major world currencies, now especially in this defi could help alot, how so?

Well with defi there is opportunity to invest or hedge against inflation or the every dropping fiat with a more stable coin, coins that are stable because they are pegged to the most powerful currency on earth today that's the us dollar which is widely accepted almost in every country.

Now hedging with this stablecoin in the form of USDT, USDC etc would help ensure one always stay afloat inflation as the value of a countries currency is always measured against the us dollar even all the assets in the financial market, so truly defi could offer this opportunity to developing countries helping them remain stable and provide them with a safe haven against their currency losing its value constantly.

Transparency and Trust

Most developing countries battle not only lack of technological infrastructures but also even the financial system available they subjects or masses have little or no trust in them as they have shown over time to be untrustworthy due to the seemingly obscure way of handling transactions, so lack of transparency on their part ensures that they aren't trusted by many.

Could decentralized finance solve this, what solution does if offer? Well decentralized finance is built on a heavily sophisticated and advanced technology known to man, that is the blockchain a decentralized network, decentralized, secure and transparent and for this transparency the level of corruption seen at local levels is not experienced here making it more trustworthy.

That could endear many to the opportunity and great potential of defi and thus truly defi could help to ensure that the masses in developing countries have trust in the financial system as it would help present a system that's trusted and immutable.

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Conclusion

Truly these are the opportunities I see with defi and it's potential to play a major role in helping developing countries from financial inclusion to building their trust in financial system by offering a more secure and transparent system that they weren't used to not to mention the pecks of serving as a hedge an investment opportunity and opportunity to portfolio diversification, indeed decentralized finance potential to help out in developing countries is truly limitless.