The Role of Decentralized Finance (DeFi) in Facilitating Cross-Border Payments

This article from Crypto Reporter explores how decentralized finance (DeFi) is revolutionizing international money transfers by eliminating traditional banking intermediaries.

DeFi platforms use blockchain technology and cryptocurrencies to enable direct peer-to-peer cross-border payments, making them faster, cheaper, and more accessible than conventional banking systems. The technology particularly benefits emerging markets and underbanked populations by bypassing inefficient banking infrastructure and reducing high remittance fees. Smart contracts automate payment processes while maintaining transparency and security through public blockchain ledgers.

• Cost reduction: DeFi eliminates intermediary fees and currency conversion costs for international transfers
• Enhanced accessibility: Anyone with internet access and a crypto wallet can participate in global financial systems
• Speed advantage: Blockchain-based transactions process instantly without banking hours or geographical restrictions
• Regulatory challenges: Governments worldwide continue developing frameworks for decentralized financial platforms