The world doesn’t need banks, policymakers or NGOs — It needs DeFi
Where I grew up, on the southern border in Texas, a tremendous number of people have come to the United States to work and send money back home. They don’t make much money, but they pay considerable fees on their transfers. Their focus is not on getting rich, but on supporting those back home in their native country. They support their families as they do hard labor day in and day out. It costs them too much to do so.
Truth be told, my father was a migrant worker. He picked fruit in the fields. We sent money back to our family in Mexico. But the remittance providers chipped away at what little money he was able to make so that they had no hope of achieving the American Dream and prospering.
The world needs DeFi due to corruption. Big governments and international corporations are controlled not in the interest of the people, but the interest of their bottom line. Credit cards and personal loans have tremendous fees, as do remittances.
When migrants send home part of their earnings in the form of remittances, they represent a large source of foreign income for many developing economies. Remittances, which are particularly important for low-income countries, account for nearly 4%t of their GDP, compared with approximately 1.5% of the GDP for middle-income countries. Remittance flows are important because they are more stable than capital flows, and they tend to be countercyclical, meaning remittances increase during economic downturns or after a natural disaster when private capital flows fall.
DeFi lowers the fees migrant workers pay to send money home, saving them billions of dollars. Some remittances entail fees of more than 20%. Out of desperation, people pay these fees to send a considerable source of their income to
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