DeFi’s $30B Capacity to Alleviate Poverty Depends on Clear Regulations

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DeFi’s $30B Capacity to Alleviate Poverty Depends on Clear Regulations

Bitget-RWA2025/11/19 20:20

By:Bitget-RWA

- DeFi Education Fund proposes using blockchain to cut remittance costs by up to 80%, potentially saving $30B annually for unbanked populations. - U.S. lawmakers debate digital asset regulations as DeFi gains traction, with bipartisan negotiations targeting a 2026 bill. - Viamericas-Loveo partnership in Honduras demonstrates DeFi's real-world impact, enabling secure remittances via 2,000+ access points. - Challenges persist: regulatory clarity and public trust remain critical for DeFi's scalability in addr

The DeFi Education Fund, a leading supporter of decentralized finance, has suggested that blockchain technology could help fight poverty by lowering remittance fees and broadening access to financial tools. In a recent blog entry, the organization

projected that DeFi systems might allow

people without adequate banking services worldwide to collectively save as much as $30 billion each year by removing middlemen and outdated banking processes. The group pointed out that individuals sending money to family members often encounter charges that

DeFi could cut by as much as 80%

compared to traditional methods.

The organization links the so-called "poverty premium"—the extra expenses low-income families pay for basic financial services—to a complex and outdated financial system. "Nothing comes without a price, and DeFi doesn't erase all expenses," the DeFi Education Fund explained, "but by eliminating intermediaries and using modern software instead of legacy infrastructure, we can

significantly lower the price of financial services

for ordinary consumers." This strategy is intended to give people more autonomy over their finances, an idea that appeals to many in the United States. Although just 3% of American adults are highly knowledgeable about DeFi,

56% consider having full control over their finances important

, 54% emphasize the need for data protection, and 53% seek clear and open financial records.

The U.S. political environment is also evolving to address DeFi’s expansion. Lawmakers in Congress are approaching the review of a sweeping bill to regulate digital asset markets, though bipartisan talks are still in progress.

Senate Banking Committee Chair Tim Scott expects

the legislation could be enacted by early 2026. Still, certain Senate Democrats have

resisted Republican proposals

, advocating for tighter oversight of decentralized finance platforms.

DeFi’s $30B Capacity to Alleviate Poverty Depends on Clear Regulations image 0

DeFi’s real-world impact is already becoming apparent.

Viamericas Corporation has teamed up with Honduran provider Loveo-Loto

to broaden remittance collection options, allowing recipients to access funds at more than 2,000 sites across the country. This partnership demonstrates how blockchain-based platforms can improve both accessibility and security, especially in areas where conventional banking is scarce.

Loveo’s partnership with Viamericas guarantees adherence

to global security protocols, giving recipients added assurance.

Even as interest in DeFi grows, obstacles persist. Widespread use of DeFi depends on clear regulations and public confidence. The DeFi Education Fund recognizes that while the technology is not a cure-all, it marks a vital move toward greater financial inclusion. At the same time,

firms such as DeFi Development Corp. are realizing profits

from blockchain ventures, reporting an unrealized gain of $74 million in the third quarter of 2025. These trends underscore the larger economic implications of the DeFi sector.

As poverty and financial exclusion remain global challenges, supporters believe DeFi’s decentralized approach could offer a scalable way to address deep-rooted inequalities. However, achieving this will require balancing innovation with protections for at-risk users and ensuring compliance with regulatory standards.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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