THE ROLE OF DECENTRALIZED FINANCE (DEFI) IN INTERNATIONAL TRADE

Анотація

Decentralized finance (DeFi) is one of the most promising technologies currently developing on blockchain infrastructure.It offers an innovative approach to providing financial services, allowing transactions to be conducted without the involvement of traditional financial intermediaries, such as banks or payment systems.This is achieved through the use of decentralized protocols and smart contracts that automatically execute the terms of agreements.Such decentralization can have a significant impact on international trade, creating new opportunities for businesses and reducing the costs of international operations.The main advantages of using DeFi in international trade include reducing transaction costs, speeding up payment processing, and ensuring transparency in transactions.By eliminating the need for intermediaries, businesses can conduct payments directly with each other, which significantly shortens transaction processing time and minimizes commission fees.This is particularly important in the context of the global economy, where the speed and efficiency of financial transactions are critical to the success of companies in international markets.Moreover, decentralized finance can promote financial inclusion by providing access to financial services in regions with weak banking infrastructure.For small and medium-sized enterprises in developing countries, DeFi opens up opportunities to enter global markets without the need to rely on traditional banking institutions, which are often inaccessible or too expensive for these businesses.In such cases, DeFi becomes an important tool for stimulating economic growth and promoting international trade in these regions.However, despite the significant advantages of DeFi, several challenges limit its widespread adoption in international trade.The main ones include legal

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