[source](https://pixabay.com/images/search/decentralized%20finance%20/)
Introduction
Truly the impact of decentralized finance is continuously been felt in most developing countries and that's because of the great impacts it has brought to finance truly it has reshaped financial landscape more than we could imagine and that's because of the fact that all the long standing issues that is associated with traditional financial services defi has come to solve solving the pre existing problems like economic instability, and the limited access to investment tools by traditional financial system these problems and many more decentralized finance has solved.
So truly puting together everything that defi has helped fixed shows why truly it is quite beneficial to developing countries. Honestly defi has solved financial exclusion and agelong problem created by traditional financial system to the world of finance and also helping to solve the economic instability caused by the traditional financial system and also defi has helped issue that those who had limited access to credit and investment tools thanks to traditional financial system that this problems no longer exist truly defi immense ability is why it plays a major role in developing countries without any doubt.
In all honesty defi which uses blockchain technology features leveraging it to the fullest extent it helps to ensure that defi achieves and solves long standing issues prevalent in the world of finance, it reduces transaction fees as a reduce of removing third parties or needless intermediaries and all this has helped to truly benefit the underserved population and those in developing countries, in my article I will highlights notable ways defi has played a role in developing countries and why we could so that and the viable challenge to this.
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> **Promoting Financial Inclusion**
Truly defi immense role in developing countries is the fact that defi has helped to promote financial inclusion truly helping those in developing countries and the undeserved population gain a taste of what it means to enjoy decentralized financial services to the fullest extent afforded to anyone solving financial exclusion and any other financial barrier placed by the traditional systems and making people in rural areas to enjoy full access to financial services which is one way defi has helped to play a role in developing countries.
Truly financial inclusion and the other issues and barrie created by traditional financial system that defi has solved it's why it's especially suitable and plays a key role in developing countries, helping this marginalized communities come into the positive light and see for the themselves the blessings of defi which leverage blockchain technology to the fullest extent so defi ensures that all the society are inclusive in the financial ecosystem which otherwise was not possible but defi has solved this and that right there is the blessing of defi.
When we talk of financial inclusion in this developing countries or marginalized societies it is really imperative we fully grasp what it means and it goes as low as a lowly farmer being able to leverage financial services to further his business as farmers could access loan easily to buy crops or other mechanized farm tool to make farming easier and be able to cover wider farm land and makes harvesting easier and the capital could thus help this farmers take farming to large scale and be really profitable, that's how defi could help truly in developing countries.
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> **Facilitating Cross-Border Transactions**
Another way that defi plays a role in developing countries is in the area of cross border transaction, most people who are involved in business that require making cross border transaction often face challenges from traditional remittance services which offers a rather high cost of doing abroad transaction which may present a challenge for many in developing countries but defi has enabled what it a rather transformative and better option to do this in a way that is not only fast but also transaction done with relatively cheaper cost which is truly wonderful.
And with defi platform there isn't really any end to the extent of hassle free transaction one could do and another great benefit is that you really don't need to rely on centralized intermediaries for carrying out this transaction and that is what help to reduce the high cost and the transactions could be made using a stable coin which is also of great benefit, because of the time we live in economics uncertainty and all and inflation it means despite any fluctuations in the local currency the use of stable coin ensures that value is maintained and stability which could come in handy for those in developing countries and even developed countries as well.
Many countries have what is a rather volatile economy which might see their currency quickly gain or depreciate against the Us dollar making it difficult at times for those doing cross border transaction the calculation and all could all be negated by the use of stable coin for facilitating transaction and the advantage of defi protocols in transaction is that not only is it done at a relatively cheaper cost unlike the traditional remittance services with defi efficiency in cross border transaction is assured.
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Defi access to investment and some challenges |
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[source](https://pixabay.com/images/search/decentralized%20finance%20/)
> **Providing Access to Investment Opportunities**
Another great usecase of defi to many in marginalized societies or in developing countries or much better to the underserved population who have been cut off as been underserving of financial services is that defi offers them something a chance to wealth something that if it were just up to the traditional systems they would be completely left out that is access to investment, yes beyond every reasonable doubt defi provides access to investment opportunities to those in developing countries and that is something to behold indeed.
Defi has truly made it in such a way that investment is democratize truly ensuring that everyone has equal opportunity to wealth yes even the underserved population have a fair chance to gain wealth and profit from their investment, truly opening the eyes of those in developing countries to a new way of investing that they otherwise have no business knowing had it been for the traditional system, placing them on a pedestal and on a path to financial breakthrough, things such as the stock market, bonds and mutual funds all of a sudden becomes available to such ones with just their internet connected devices it becomes accessible.
So make no mistake the blessings of defi in developing countries truly knows no bounds and there isn't anyone who can doubt that and we might begin to wonder then how can defi help this one's can they navigate their way around, well not to worry defi platforms are user friendly so the borrowing, lending and investing services are given in a platform that is user friendly so defi has truly empowered the underserved population yes hear hear for all who cares to know.
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> **Challenges and the Path Forward**
For a fact defi role in developing countries is without any question at all and clearly visible as I have carefully enumerated but make no mistake inasmuch as defi has immense ability to change things in developing countries it has some challenges as well infact except this challenges are solved then it becomes a challenge for defi to achieve its fullest potential and reach the audience it aims to reach in other to be fully effective then defi has got to address this issue, well what then are these issues? And what's the path forward?
Some of the issues that is on the path of defi to achieve all it wants in developing countries is that in most of this countries there is lack of technological infrastructure, also people there are not tech savvy or are rather ignorant and haven't been educated on the digital know how, we have the long standing issues of regulations facing defi and security issues defi has got to still address like potential risk of users being fraud or any vulnerabilities that maybe present in smart contract, truly these thus becomes some of the notable challenges facing defi and it's goal to effectively impact developing countries.
Well what's the path forward, can this be solved, I believe educational program must be invested on for the sake of these parties to be tech savvy and better use defi protocols and when it comes to regulation uncertainty I believe it's time for policy makers to understand the role of defi and strike a really just balance if they want all the society to be carried along and a stable economy and its imperative for defi security protocols to be enhanced to better ensure trust.
[source](https://pixabay.com/images/search/decentralized%20finance%20/)
Conclusion
All in all defi plays a role in bringing decentralized finance to developing countries such as bringing financial inclusion to this undeserved population and facilitating cross border transaction as well as providing access to investment opportunities, so if defi is able to truly combat this all challenges it would be able to play an even greater role in a rather effective way.
