DeFi Advocates Propose $30B Plan to Fight Global Poverty — Here’s the plan

Core Insights - A coalition of decentralized finance advocates is proposing a new initiative aimed at alleviating financial burdens for low-income households globally, potentially saving up to $30 billion annually in fees associated with the "poverty premium" [1][4]. Group 1: Global Poverty Context - As of 2025, an estimated 808 million people are projected to live in extreme poverty, defined as living on less than $3 a day, alongside 887 million living in multidimensional poverty [2]. - Many low-income households are facing compounded challenges such as climate-related disasters, political instability, and rising economic fragility [2]. Group 2: Financial System Issues - The DeFi Education Fund (DEF) highlights a significant cost disparity in the financial system, with 5.6 million U.S. households unbanked and 14.2% underbanked, often resorting to expensive financial alternatives [3]. - Cashing a paycheck can incur costs up to 5% of its value, and low-income families face average fees that consume 7.1% of their annual income, compared to just 0.2% for wealthier households [3]. Group 3: DeFi Solutions - The proposal suggests that decentralized financial systems could drastically reduce costs associated with remittances, money transfers, and bill payments, with potential reductions in global remittance costs by up to 80%, saving unbanked populations $30 billion annually [4]. - A survey by DEF indicates that 42% of Americans would consider using DeFi services if new legislation clarifying crypto privacy protections is enacted [4][5]. Group 4: Advocacy and Policy Efforts - The DeFi Education Fund is intensifying its advocacy efforts in Washington, aiming to promote the economic benefits of decentralized finance [6].