Decentralized Finance (DeFi) will Disrupt Banking and Currencies
Decentralized Finance or DeFi seeks to disrupt traditional banking and financial services as well as possibly even the monetary systems we have in place as Quantitative Easing (QE), Central Banks and Currencies risk falling off a cliff. DeFi and public blockchains such as Ethereum have Dapps or Decentralized Applications built ontop of them. As the world goes mobile and financial services can be accessed on demand from your smartphone, the promise of DeFi is massive. Particularly in developing countries where people lack access to Inclusive Finance. As these cryptocurrencies, blockchains in the form of software eats banks and eats money itself Finance will be forever disrupted. And the applications for distributed and decentralized Finance and money with censorship-resistant protocols such as Bitcoin can create a new money order. The ease of access, ease of use of cryptocurrency exchanges is getting much better in 2020, however there are still regulatory debates happening and regulatory frameworks that are being put in place.
Decentralized Finance hit a collective market capitalization of $1 Billion yesterday according to this CoinDesk Article.
I believe software will soon be eating traditional finance, banking and monetary systems for breakfast as many crypto fanatics believe. Whether that happens through public or private corporate blockchains remains to be seen. Furthermore, since many Central Reserve Banks such as the Federal Reserve no longer have the proper tools in place to fight off any upcoming financial crises or recessions, many nations are now looking toward launching their own Digital Currencies. This is primarily because Quantitative Easing (QE) has been largely exhausted.
Published at Sat, 08 Feb 2020 19:40:13 +0000
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