Topic: Will "De-Fi" replace traditional banking in the future? - page 5. (Read 1026 times)

It can happen i believe nothing imposibble nowadays, sooner or later all the system will be change from the traditional banking like now change into the blockchain as soon as possible or all the bank will left behind
People should adapt new system before get left behind ofcourse some bank will fight with all the crypto world, blockchain or DeFi
But time move so fast we have to change and all people have to accept that

Hopefully that day is not far off.This backing system will no longer be extended.People are transacting day after day for their easy availability.They are giving more priority to online base transactions.This makes it much easier to do a simple transaction than a backing transaction.Defy will make the transaction much easier. Hopefully.

I don't know if that will happen in the future or not. The Defi Baru project operates in the cryptoqurrency industry space, if taken from the negative side that there have been 2 Defi projects that ended in scams, for example YAM & UBI. So, I think it's too early to say that the Defi project can replace the FIAT currency.

collateralized loans are good start, there are some start up projects where you don't have to put 2x collateral to get a loan. Pretty sure what you are saying will become reality soon enough.

Basically I think No Traditional banking will be here as far as fiat is been used, from the look of things I will say not many people are using crypto in large scale and there is also countries policies and restrictions So maybe when there are major usage in large communities then we can talk about effect of defi on traditional banking system

At the time like this, I don't think this can replace the traditional banking, The hype is so much that's why the hopes of the DeFi supporters is really high and creates a possible situation like this to give more charcoal to the fire. I'm not saying it's not possible but we know that traditional banking is well established and DeFi thing is new and this would take time for DeFi projects to catch up and to gain masses for it to fully replace traditional bank, For now, it is more logical if we ask the question "Can DeFi be on par with traditional banking?". We know that the majority of people is scared to try new things, It is the same as bitcoin, People doesn't really want to try it out because they are scared of trying something new and given the fact that bitcoin is on its 10th year now, The majority of the population hasn't tried or never heard bitcoin. This can also happen in DeFi.

What people need to know and understand is that, traditional banking system will always exist so far as fiat currencies still exist. Also, government all around the world will always prefer the centralized system rather than a decentralized system where they have no control of how transactions are made on the system. So far as they prefer centralized systems, traditional banks will always be in the financial ecosystem.

It actually has the capacity to take the place of the old ways of doing things in the space.
DeFi ensures there is more decentralization than what was and is obtainable with most projects. Those that will be able to stand the test of time are the ones with good tech and most needed in the industries. There is need for multiple oracle feed by both crypto and traditional finance. Most Oracles have integrated DeFi, a clear indication that it has come to stay.

It's still early to make conclusions / predictions. DeFi is currently being hyped – almost all new projects are DeFi related while the older ones now supports DeFi related features on their platform in order to stay relevant. Despite this, we have to wait and see how DeFi holds up. I remember ICOs and IEOs were hyped as much as this but not anymore now. When the hype dies down, that's when we'll be know the true potential om whether or not it'll continue to stay relevant.

Right now, DeFi is a long way from replacing the status-quo.

A long long way to go for DeFi to replace traditional banking. We may not even see that situation in our lifetime. Traditional banking will survive for so long because even if a lot of people are going digital, still more of them are keeping themselves in traditional way. It is like their safe haven even if we are advancing in technology. Up until now, the percentage who are into crypto is small as compared to global population. So going DeFi, their clients may increase thru the years. But the trust is still on these traditional banks.

these are things that will not happen. Traditional banks have more functions and uses than DeFi.

the process of borrowing or saving money/assets is still very much needed and DeFi does not have such a function.

in the future, DeFi and traditional Bank will work equally well without turning off each other.

It is too early to say domething like this, let defi projects prove themeselves first, let the business model succeed. Some critics point out that these defi projects will not be sustainable so lets see how they go for next 2-3 years. If everything goes well then definitely defi can vompete with traditional banking but i think it will be a long and bumpy road ahead.

In a way it makes sense that DeFi does yet stand a chance against traditional banks, even with their lending platform services. However, one thing I'd like to help you maybe change your idea of DeFi is to think that this is still in its early stages and who knows from now with so many alts being developed one day you might be able to buy anything you want through DeFi. This is of course, extrapolated but not completely unfeasible given how quickly this new finance system has spread.

Agree. De-Fi still needs time to improve itself. I believe that we're in a hype phase, as new De-Fi dApps emerge like "hot cakes". Eventually, flaws will be discovered (like the case of YAM.finance) urging the need to improve smart contracts providing De-Fi services. So far, the industry is way behind traditional banking in terms of performance and mainstream adoption. Either developers continue to work hard in order to make De-Fi better over time, or leave it as is. The hype cycle similar to the one in ICO's early days, might come to an end after the demise of the COVID-19 pandemic. Given that De-Fi is still not mature for the mainstream world, it cannot replace traditional banking as we know it.

All in all, time will tell us if De-Fi will be a "flawed experiment" or not. There's a possibility that governments will regulate the industry more thoroughly as they did with the ICO craze. If that happens, De-Fi app developers might be subject to comply with those regulations in order to launch their dApps to the public. After that, the growth of the industry will diminish until it's non-existent. Just my opinion

Replacing traditional banking will initially require mass adoption  from all around the world where even haters start to love and believe in crypto. I believe that DeFi has already played a big role in bringing back the attention of mainstream towards crypto once again, where the centre point of attraction were coins which did more than 3000x in less than a month, excellent! Anyways, I can't say that traditional banking will be destroyed completely but yeah, if everyone becomes a fan of the crypto ecosystem then definitely, there are people who will stop traditional banking once and for all.

This happening all depends on how successful the blockchain industry will be in the future because without the blockchain technology becoming a force non of the new innovation will matter. DeFi are spectacular but do you really think they can keep the momentum that high until everyone is ready to used them?. Anyone remember what we all thought about the ICO era saying it'll replace traditional crowdfunding system but that has failed.

Not trying to say DeFi will fail too (I wish it won't because it's a nice concept that'll be beneficiary to the massive) but we shouldn't be too quick to used new trends to compare with old ones that have served us for years, gaining the trust of the masses even when they're not worth it. DeFi innovation is still new and needs time to better itself but until then, the traditional system still has a higher advantage over DeFi.

The rate out which scammers have invaded Defi same as they did to ICO is really becoming alarming and I have it survives and do it's great work in crypto. I have seen coins pumped from 100$ to 0. And some from 50$ to 3$. I know everyone has the right to make choices of what to trade but the way Defi is going I hope it doesn't end like ICO.

DeFi projects definitely have the potential but i think there is still need of massive support infrastructure, smart contracts, blockchains and products that will complete the defi ecosystem and develop it into something for the common man and at the same time the world will need access to quality internet for cheap and then the masses should be able to make use of all these defi products and services but all this process can take many years.

It will definitely challenge and compete with the traditional banking and finance in a few years time but we will have to see the impact it creates and how the world reacts to it especially the regulators before we can conclude that they will completely replace banking.

Agree. So far, De-Fi has a long way to go before it'll be able to replace banks anytime soon. There are a lot of flaws which make De-Fi apps vulnerable to external attacks. I guess that the De-Fi industry is not as mature as I thought it was. Smart contract platforms like ETH and EOS would need to focus on security in order to make De-Fi as robust and resilient as possible. Besides that, developers of De-Fi apps need to verify everything is in "tip top shape" before launching them to the public. The less flaws De-Fi apps have, the higher their adoption will be in the mainstream world.

As De-Fi promises to give "banking to the unbanked", I think it will totally revolutionize finance in the future. The industry might challenge banks worldwide, as De-Fi becomes used more thoroughly by everyday people. At this point, banks could pressure governments in order to enforce heavy-handed regulations to stifle the growth of De-Fi. In order to prevent that, De-Fi needs to become fully decentralized by relying on decentralized infrastructure (decentralized exchanges, IPFS, etc). Only that way, De-Fi will become extremely resilient against government intervention.

In the end, De-Fi might only become an alternative than a true replacement of banks. That's largely because banks still dominate the world's economy. As long as governments rely on central banks to issue Fiat currencies to the world, De-Fi won't be going anywhere. It's best for the industry to "stay as is" in order to let people decide from one type of banking system to another. Just my thoughts