Topic: Will "De-Fi" beat Banks sometime in the future? - page 3. (Read 477 times)

I saw many De-Fi failed already to know it will never stoop up the level of banks. Most banks have the backup of government so even if something goes wrong, they could all way has some relief package to help the market back to normal because the whole market, loans and borrows depend on it.

No one will be able to replace a bank as long as the main transaction is a Physical currency. De-fi is a form of blockchain-based finance that does not rely on central financial intermediaries such as brokers, exchanges, or banks to offer traditional financial instruments, and instead uses smart contracts on the blockchain, the most common being Ethereum. So basically De-fi is still a crypto product based on digital assets unlike banks that have physical assets.

Banks will adopt DeFi if it's secure and offers benefits over the current system, which it does. Flare and NEAR are contenders for this new financial system.

This is what we have been seeing already like the Nexo and Blockfi. Although they are using cryptocurrency, this is CEFI which is basically a registered finance company. Many will still prefer to trust these type of companies because they feel safe in case of hacks like what happened to Polynetwork which if the hacker was just not traced and identified, he wouldn't be sending back the stolen funds.

With registered companies performing Cefi, they have safeguards of funds and insurances too which banks could be on way to develop their own to find relevance in this recent change in the financial industry.

Banks will adopt DeFi if it's on a secure platform that can scale, like Flare or NEAR.

no, as long as bad projects still get a place in the crypto space. Defi will not be able to replace the Bank. everyone would not be able to put their trust in such a project. so it is still safer to use a centralized system that is guaranteed by the government even though it does not have freedom. the defi sensation won't last long as many defi projects commit scams.

This is not considered a competition, I realize that between traditional finance and cypto there will need to be consensus to have a common solution. Defi is very good, but we only look at the good side of it is not enough, the current life needs more than that.

I think its too early to tell cause there are still many who patronized bank and only those who are into crypto are using defi products. In terms of rate there is no doubt defi is the winner however, people are skeptical and probably looking into the legality of those projects. We all knew that defi runs on a decentralized ecosystem where people are not used to it.

I think no and if there is chance it's need really long time, The Blockchain itself it's already threat for the bank in the first place and now DeFi it's with more complex finance process integrated with Blockchain but still bank have more advantages because it's backed by gov and many other big party beside that people still prefer more safe system (In case any thief, fraud, etc) Bank still can handle it much better in term of refund or reporting to the police while Decentralized System like DeFi it's little bit hard, It's my personal experience when i report to the police for my case it's little bit complicated for Crypto to handle by them (Third world Country), Here https://bitcointalksearch.org/topic/m.53734483.

Well, scalability is one of many important things that need to be addressed, but as you said it won't solely depend on it. Though fixing the scalability issue is one step forward, but defi needs more than that to truly compete with banks.

Its been in the cryptocurrencies spaces that blockchain and defi have become a buzzword. Like some people lured and became a maximalist that think cryptocurrencies will replace fiat, so does with defi that will replace banks. It's not the matter of bank or defi, but defi and bank will/could coexists with each other. Don't get me wrong though, cryptocurrencies give us the possibility we can't imagine, but the world needs to comply with the regulatory issue.

DeFi and cryptocurrencies will be more seriously regulated by governments and they will face with many barriers for their growth.

DeFi projects are not like Bitcoin. Their developers are publicly known and governments can catch them if they want. Bitcoin is an anonymous Satoshi Nakamoto that makes it different.

If governments can force Binance to do KYC on all customers, they can do the same or more serious things on DeFi projects. The latest KYC updates on Binance is a new warning that exchange wallet is not the safe wallet to use.

I don't like Binance with that update because they don't give customers time to withdraw money if they don't want to complete KYC. What do Binance think when they allow withdrawal but don't allow to cancel current orders? It's very shady rule.

Nah, it's too far fetch and I don't think it won't happen in the future. I don't see banks seeing it as a threat though, and maybe they are going to take advantage of it as well, to lure people into their banks. That's how these banks works for centuries. "If they can't beat them, join them attitude".

De-Fi, can exist with banks too, so there will be no problem as well. Maybe in the future, there will be De-fi 2.0 so still a win-win for us and the banks as the money keeps on flowing.

i also don't think that we will see this happen in our lifetime. the traditional banking system has been established for decades and decades and replacing them with the new technology is very far from happening, as of this moment. even now, DeFi system is showing vulnerability to outside attacks. so it is quite difficult to sell the DeFi system to ordinary users. maybe, right now, some are enjoying the benefits of DeFi but the security alone, it can't guarantee its users. just be grateful that people can enjoy the DeFi market along with the traditional system. so it is their choice how they can grow their funds via these options.

No even we count for decades. The banking system is so huge and will evolve more while in progress. Big individuals, business owners, big people, downed to a regular person will still prefer a centralized system because of safety, assurance, and being insured in case of a fu*ked up.

But honestly, I want to see a full decentralized system but already accept the reality that it won't happen even by less chance.

Rather than replacing banks, why not hope that they will exist at the same time, take advantage of them and enjoy both.

Decentralized Finance ("De-Fi") is a new trend which has been gaining steam ever since the first smart contract platform (Ethereum) came into existence 6 years ago. Right now, it's possible to borrow, lend, and even trade crypto assets without the need for a middleman. The introduction of stablecoins brought us the stability of Fiat along with the convenience of crypto. People can have money in Fiat, without the need for a bank account and still earn interest by holding it. This brings complete financial freedom to the world (something that was never thought possible before the inception of Bitcoin and Ethereum).

Of course, not everything is reds and roses. "De-Fi" has its limitations since it's fairly new in the mainstream world. Blockchain is still unable to scale to millions or even billions of people worldwide, so the experience will not be the same as with Banks. Fortunately, scaling solutions are on the works with the hopes of putting an end to such issues. If all goes well, "De-Fi" might beat banks in the future. Everything will depend on mainstream adoption for this to succeed in the long run.

What do you think? Will "De-Fi" beat banks in the long term? Or is it still too early to tell? Do banks consider "De-Fi" as a threat to their existence? Your input will be greatly appreciated. Thanks in advance.