The Impact of DeFi on Global Financial Inclusion (Part 04)
Consistently, I am presenting a discussion on Decentralized Finance before you. This is the fourth part where I will describe some of its challenges as well as try to explain how to overcome such challenges. Such wonderful technology can change our future financial sector overnight if we can spread it to everyone. Then we can all enjoy its benefits. From the previous discussion, you have understood the significance of DeFi in global financial inclusion through its features. DeFi is able to address the weaknesses of the financial sector in various places. We can make it more usable and popular among all by increasing its popularity and highlighting its features to people.
There are many areas in the world where there is little opportunity for investment because people may be deprived in various ways by the government or otherwise. In many underdeveloped and developing countries, the financial sector is not so prosperous and banks cannot function properly. Therefore, due to the weakness of financial institutions, the guarantee of savings and investment for all is not easy here. But the best solution we see is through DeFi.
In regions where access to traditional investment products is limited, DeFi platforms offer an alternative way for people to grow their wealth. For example, yield farming and liquidity mining are popular DeFi strategies that allow users to earn interest on their crypto assets by providing liquidity to decentralized exchanges or lending platforms. These opportunities are available to anyone with a digital wallet. Location or financial status is not important here. So it is easier for individuals in underserved regions to participate in the global financial system.
In the next episode, I will share the last post 5th part of this discussion, some challenges and how this platform can become one of the best financial services in the future will be discussed there. I will end the discussion of this topic in that post.
~ Regards,
VEIGO (Community Mod)
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I expect a positive Impact of DeFi on traditional finance and over the years it may grow even more as it offers a lot and this is what makes it better