The DeFi Education Fund, an advocacy organization focused on decentralized finance, recently proposed using this technology to reduce costs, aiming to address poverty issues in the United States and globally.

In a blog post released on Wednesday, the organization pointed out that DeFi infrastructure has the potential to save approximately $30 billion annually in remittance costs for the unbanked and underbanked populations worldwide. The organization illustrated that the fees paid by workers when remitting money to their hometowns could be "reduced by up to 80%" through DeFi technology.

The DeFi Education Fund stated, "The poverty premium [the extra costs borne by low-income families, while wealthier individuals often access the same services at lower costs] persists because the current complex and outdated financial infrastructure makes it expensive to provide profitable services to low-income customers." The fund further explained:

Numerous advocates have proposed various applications of blockchain technology to address the factors leading to poverty, such as shortening transaction times, eliminating or reducing fees, and increasing accessibility to financial services. The DeFi Education Fund highlighted the growing related costs in the U.S., including the expenses for unbanked individuals cashing payroll checks, using money orders, and housing-related costs.

"While only 3% of Americans are very familiar with DeFi, a considerable number are open to its core value propositions," the fund stated. "Most American adults find DeFi features quite appealing: 56% value having complete control over their funds, 54% want full control over the security of their personal and financial data, and 53% wish to view their complete financial history at any time."

In the U.S., lawmakers are gradually approaching the consideration of a comprehensive digital asset market structure bill. Although Republicans on the Senate Agriculture Committee and the Senate Banking Committee have released a discussion draft of the bill, questions remain about what the final bill will look like after bipartisan negotiations.

Reportedly, in October this year, several Democratic senators on the Banking Committee opposed the Republican draft bill regarding DeFi. These senators proposed a measure that could restrict decentralized finance protocols under certain circumstances.

This market structure bill has been delayed due to the 43-day government shutdown that ended last week, and it is reportedly moving forward. Senate Banking Committee Chairman Tim Scott stated that he expects the bill to be signed into law by early 2026.

Related: Coinbase to Launch New "DeFi Mullet" Product in Brazil

Original article: “Advocacy Group Proposes DeFi Solutions to Address Global Poverty Issues”

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