Will "De-Fi" replace traditional banking in the future? - page 4.

Vaculin

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Quote from: Bossfidelity on August 28, 2020, 06:53:38 AM

It would be smoothing to have Defi replace traditional banking services, but that would be very difficult to accomplish.

Or impossible to accomplish, banking system been for a very long time and it's been regulated well by the government, there's no way it will be replace to something that is decentralized which our government has no control or interest.

Quote from: Bossfidelity on August 28, 2020, 06:53:38 AM

As it stands cryptocurrency is barely recognised as a legal tender in several countries which makes it difficult for holders to utilise it for offline transactions. The adoption of cryptocurrency would be a great boost to having Decentralized finance replace traditional banking.

That's a good reason, bitcoin needs to gain massive adoption, then we can talk about replacing traditional banking.

zasad@

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I would not talk about replacing the banking system with the Defi ecosystem.
Blockchain technology allows you to openly store useful information, and you can be sure that it will not be changed, so there is no need to waste time checking the data.
The Defi ecosystem already operates as a banking system, but it requires collateral in the form of stablecoins or other cryptocurrencies.
The banking system will undoubtedly change, but it will find ways to parasitize on society.
The only way out is to build an alternative system so that you can pay for everything with cryptocurrencies.

Bossfidelity

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It would be smoothing to have Defi replace traditional banking services, but that would be very difficult to accomplish. As it stands cryptocurrency is barely recognised as a legal tender in several countries which makes it difficult for holders to utilise it for offline transactions. The adoption of cryptocurrency would be a great boost to having Decentralized finance replace traditional banking.

casperBGD

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i do not think that it is possible for DeFi to replace traditional banking, it will certainly be there for P2P lending and borrowing, but it is a huge industry to be substituted with self-governed DeFi project, maybe banks will include some variant of DeFi infrastructure for people to lend their money from their accounts through bank infrastructure, but to let the whole industry go, i do not believe in that scenario

wiss19

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DeFi is getting more popular and as time goes on the popularity will be more than this and it will attract more and more investors, and of course I was expecting people to start asking questions like this , whether they will replace the traditional banking. It’s just like when Bitcoin was getting popular everyday, a lot of people started asking questions whether it is going to replace traditional banking.

I think people don’t understand these things. These DeFi/crypto are something else, am alternative to the main system that can’t be changed. They kind of provide you with other means to do something in another way, and we should understand that.

hulla

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Defi project moves crypto to the next level by giving crypto enthusiasts the opportunity to use crypto as finance instead of a fixed account and despite the huge potential of DeFi,, we still cant say DeFi will replace traditional banks because the government stance against crypto will play a huge role. However, i don't expect the institutions to just watch Defi taking their position.

shoreno

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just because there is a financial on its name does it mean it solves financial problems or related to it ? hmm i think no . we dont even know if how long this will last . if their fame is only for temporary purpose , people will still going bank on traditional banks . one more thing , btc and crypto are also said to replace banks before but that didnt happen . infact btc/cryptos are still famous till now and they are much better than defi imo .

dataispower

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DEFI can't replace traditional banking in future no matter the level of success. We all know the challenges faced by crypto/blockchain projects, hence general acceptability by centralized authorities will be a problem. DEFI has a long way to go, this is just an initial stage and we hope it doesn't become extinct like some other trends in future. I'm very optimistic with the progress of DEFI projects seeing what is achieved already, but replacing traditional banking will be a hyperbole.

ElmedoRator

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Who knows its future, it could crash and die at any time if there are too many scams. Looking back at the 2017 ICO, many were hoping that it would change the market and help Bitcoin go up to $ 100k. But soon the ICO crashed and became a scam. Defi is just a trend and I believe it will be extinguished quickly over the next few months

@baoli

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This is a tall order you mentioned. This could happen but it will take a very long time. First internet needs to get to everyone. As everyone start getting tech savvy then stories like you mentioned will start making sense

Chukwunonso

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It's actually possible to have Defi tokens replace traditional banking but that would be in the distant future. Cryptocurrency may one time be recognised as a better alternative to traditional financial tool, but it would take a while for us to get to that stage. A lot has to be put in place before cryptocurrency can have its way to traditional finance or banking.

shadowduck

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Quote from: hrunya102 on August 27, 2020, 04:09:46 AM

Defi need to create some insurance funds, so that users have more confidence in the system, so that there is no risk of losing everything

risks were and always will be. any person who invests in cryptocurrency understands this. Even if the project has some kind of insurance fund, the risks still will be

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Quote from: masterrex on August 27, 2020, 08:32:02 AM

I don't think so, because the traditional banking system is widely used, thats why it's not that easy to replace it. and I don't think that the banking sector well remains the same in the years to come. I'm sure they will innovate to be able to compete in the Decentralized finance (De-Fi) alternatives. As we have seen today some in the banking industry was already embracing the Blockchain technology in my country commercial Banks was already adopting the Blockchain technology so it means that it can be used both the traditional and present system if we want too.

There may be 2 options, including the bank will fight to prevent the legality of De-Fi or the bank will adopt De-Fi in its system
the fact is that we cannot resist technological developments for the sake of financial advancement so De-Fi will still have to replace traditional banking
but in my opinion most likely traditional bank will adopt blockchains system, De-Fi to get bigger profit

TGD

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Quote from: hrunya102 on August 27, 2020, 04:09:46 AM

Defi need to create some insurance funds, so that users have more confidence in the system, so that there is no risk of losing everything

There's already DeFi insurance project that focus on smart contract security like Etherisc^[1], Nexus Mutual^[2] and Opyn^[3]. I believe too that insurance is a must on DeFi since all funds of investors are placed on smart contract which has a risk for potential potential bug like what happened on DAO. DeFi is the real threat to banking system and I believe they might
be adopt by banks. Replacing banks is a bit delusional because they are not idiot to be left behind.

[1]https://etherisc.com/
[2]https://nexusmutual.io/
[3]https://opyn.co/#/

masterrex

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I don't think so, because the traditional banking system is widely used, thats why it's not that easy to replace it. and I don't think that the banking sector well remains the same in the years to come. I'm sure they will innovate to be able to compete in the Decentralized finance (De-Fi) alternatives. As we have seen today some in the banking industry was already embracing the Blockchain technology in my country commercial Banks was already adopting the Blockchain technology so it means that it can be used both the traditional and present system if we want too.

hrunya102

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Defi need to create some insurance funds, so that users have more confidence in the system, so that there is no risk of losing everything

minairia3

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Quote from: foxy on August 27, 2020, 03:09:33 AM

DeFi still has a long long way to defeat the current financial institution because it's still a fairly new concept but, if the DeFi keeps booming the way it is now then I say why not in the next few years DeFi can definitely replace traditional banking.

Defeat can, but replace Im not sure. Traditional bank has always been part of every country. Yes cashless through cryptocurrency is very efficient means especially right now but defi is a new concept that has been introduced lately. I know it may be hard to implement this and explained clearly on the community on such ease that they can grasp it. But I am looking forward for banks to adopt the blockchain and stop refusing its technology, cause be honest it will ease every transaction. The only concern here is the tax system wherein blockchain is not really into it. Though its required people kove decentralized.

bobyhodob

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Quote from: foxy on August 27, 2020, 03:09:33 AM

DeFi still has a long long way to defeat the current financial institution because it's still a fairly new concept but, if the DeFi keeps booming the way it is now then I say why not in the next few years DeFi can definitely replace traditional banking.

This DeFi project will only last for a while, it can be said that it is like FOMO because it will be trending at this time, I am sure that in the future DeFi will not have a good effect anymore because there are no investors who provide support anymore.

Crypto_lion

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My opinion is that we aren't anywhere close to defi replacing traditional banks . We are still waiting for bitcoin and other crypto to be used as prominent payment methods.

foxy

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DeFi still has a long long way to defeat the current financial institution because it's still a fairly new concept but, if the DeFi keeps booming the way it is now then I say why not in the next few years DeFi can definitely replace traditional banking.

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