Collaborative research from Circle & Uniswap noted that World Bank remittances could be reduced with a very big difference with the adoption of the Decentralised Finance (Defi) concept in their traditional system.
Decentralised Finance (DeFi) is a concept which came to light during a discussion among the Ethereum devs. The discussion was trying to figure out a method to bring a fully decentralised platform for the Crypto traders. In the last 2 years, huge numbers of Defi platforms emerged in the Crypto sector as the best decentralised Crypto services providers with their unique concepts.
On 19 Jan 2023, Uniswap Labs, a team of leaders who works for Uniswap’s decentralised Crypto exchange, published research entitled “On-chain Foreign Exchange and Cross-border Payments” to explain the potential of the Defi concept over the traditional financial system and noted that it can cut the cost of World Bank remittance by 80% easily.
This research was prepared by the collaborative approach of the experts of the Uniswap & USDC issuer company Circle. Experts behind this research were Data Scientist Austin Adams, Circle Chief Economist Gordon Liao, Mary Catherine Lader, David Puth, and Xin Wan.
The research noted that Defi’s introduction to the remittance services of the World Bank, will not only bring benefits to the World Bank but also all the participants in its environment including a customer.
By taking an average example, the researchers noted that a $500 remittance will cost $19+$28 but with Defi, we can do the same thing at only $4.8 fees.
This researcher shows that Blockchain technology & Defi concept will surely enter the high-level foreign money exchange & remittance system because these can provide benefits for all the middleman actors with full transparency.