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

[Abiky]

There are many "De-Fi" (Decentralized Finance) apps out there in the crypto/Blockchain space, each with their unique features and offerings. The most popular one is Compound.Finance which provides loans and also lets lenders earn from attractive interest rates. So far, "De-Fi" apps have been widely successful providing "Banking to the Unbanked". With stablecoins mimicking traditional Fiat currencies, people can enjoy banking in a completely decentralized manner. The emergence of COVID-19 in the mainstream world, has accelerated adoption of "De-Fi" apps and stablecoins by a large rate.

If "De-Fi" apps become extremely popular and work as intended, do you think the industry will replace traditional banking in the future? Or does it have a long way to go?

Your input will be greatly appreciated. Thanks in advance.

[TravelMug]

If "De-Fi" apps become extremely popular and work as intended, do you think the industry will replace traditional banking in the future? Or does it have a long way to go?

Your input will be greatly appreciated. Thanks in advance.

I would agree that it will become popular as obviously it is just the beginning. But I doubt that it will replace the traditional banking system. It's already a pillar of government so there's no way that a country will exists without it.

Besides, this Defi seems to be just a bubble, so there is that possibility that the hype will die down a bit after the burst. But it will still remain in the crypto sphere, until a new hype comes along.

[hatshepsut93]

With bank you can show up in your financial center with nothing more than your ID, and get a personal loan for your needs. Or you can buy a car or a house or a lot of other things. You can also get a business loan. DeFi doesn't offer any of those things. And it won't be, it's limited to blockchain assets, and the moment it tries to live it it would have to introduce trust or it will fail like the DAO did.

[Bitstar_coin]

Before we talk about replacing the traditional financial system let them start being operational and actually provide this so much talked about decentralize financial services to people, let the people use the service and perhaps give a positive feedback, because all I see for now is just hype and price pump, no practical usage for now which will be the key point to be looked upon before any further talk of replacement.

[aprilnot]

it won't, because DeFi will only be popular among crypto lovers. Traditional banking will exist and will not be replaced. the current banking system is difficult to replace because people are comfortable with the current system. and as long as countries still use FIAT as their main currency, DeFi will not be able to get a place.

[FinneysTrueVision]

DeFi gets hacked or exploited all the time. When you lose money there is usually no way to get it back. Most people are fine using traditional banking because they feel more secure. Even the DeFi shillers are not going all in on DeFi and probably keep most of their money in a bank.

[Yaunfitda]

It there will be something that is going to replace traditional banking system, it should be bitcoin. However, it is not the case, too much issues, like scalability, market's volatility etc. And as far as Defi goes, it doesn't have the stability that banks gives. There are too many players in the market that can manipulate and then scams and hacks. So there's no way that banking system will become obsolete because of this Defi hype.

[mr.smith]

If "De-Fi" apps become extremely popular and work as intended, do you think the industry will replace traditional banking in the future? Or does it have a long way to go?

Your input will be greatly appreciated. Thanks in advance.

Even if it becomes extremely popular I don't think it can and will ever replace the banking system, the banking system is deeply embedded to our system because not everything can be done online, you can blame it on some sectors and countries where the internet connection is very poor and there are some people who do not understand the DeFi language.

[coiningz]

Traditional banks will adapt to new techs, i dont think that they will gone somedays

[bgaf]

If they can do what traditional banks can offer maybe. But lets be realistic here. Its gonna take many years before people shift to cryptocurrency and used that like what banks are doing. Im not sure about the topic if comparable but it seems too early to see the possibility of this.

Traditional banks will adapt to new techs, i dont think that they will gone somedays

They will not gone until the end but the fact that tech is evolving some partnership on digital currency can still be possible but replacing them is quite impossible.

[anu1908]

what about your own opinion? you've been creating threads like this one so i think it would be better if you have at least provided your own opinion on your opening post.

defi won't replace traditional banking. most people are still careless and don't want to use something risky. they want to be able to get back their money when something goes wrong. with defi you can't do that, either the network is secure or not. which means there's no way the majority of the people will use something like that to hold millions of their funds.

[coin-investor]

There are many "De-Fi" (Decentralized Finance) apps out there in the crypto/Blockchain space, each with their unique features and offerings. The most popular one is Compound.Finance which provides loans and also lets lenders earn from attractive interest rates. So far, "De-Fi" apps have been widely successful providing "Banking to the Unbanked". With stablecoins mimicking traditional Fiat currencies, people can enjoy banking in a completely decentralized manner. The emergence of COVID-19 in the mainstream world, has accelerated adoption of "De-Fi" apps and stablecoins by a large rate.

If "De-Fi" apps become extremely popular and work as intended, do you think the industry will replace traditional banking in the future? Or does it have a long way to go?

Your input will be greatly appreciated. Thanks in advance.

It's good that we have DeFi I've seen it's potential Coinmarketcap and Coingeckohave created a page dedicated to DeFi tokens these projects with it's features really have potential in the market, but we cannot disregards the services of the banks and how they served the many sectors of our society, they probably can co exist but it's unlikely that banks will vanish in place of DeFi.

[asder250]

Guys, be aware, all of your DeFi coins are overvalued. When you stake/mint your coins you get a loan and you can use the debt for buying more coins. But at the end, the value of the coin what you have minted is 0, not backed, not useful for anything else.. 

[Bossfidelity]

Defi projects has the potential to do great things in this space, but I don't see them with the ability to replace the traditional banking structure. This is because every independent country would like to be on top of the finance in the country and control the option for citizens. Most countries don't even have cryptocurrency as a legal tender so it would be difficult to inculcate it or replace the traditional banking.

[shadowduck]

Guys, be aware, all of your DeFi coins are overvalued. When you stake/mint your coins you get a loan and you can use the debt for buying more coins. But at the end, the value of the coin what you have minted is 0, not backed, not useful for anything else.. 

The biggest part of the coins is already used by many people. Now everyone liked Defi projects and I think the faster the technical development of Defi takes place, the more people will use these coins.

[taguig]

If "De-Fi" apps become extremely popular and work as intended, do you think the industry will replace traditional banking in the future? Or does it have a long way to go?

Your input will be greatly appreciated. Thanks in advance.

It's too early to speculate yes it is popular now but for how long so many DeFi projects are now existing let us see first how the industries and investors will adopt if this happens I think it will take a lot of time, banks have been here for a very long time and it's been one of the biggest contributors in our modern world.

[landoffaucets]

The most important thing is creating a debt, when you have a debt, you can build over it many financial instruments. But now we are in the phase if we can really create debt in this way. 

[Strongkored]

At this point, I just saw DeFi as a way to get higher interest than the way we save money in conventional banks (based on DeFi project OP mentioned), specially this month when DeFi coin pump and make the price overvalued.
Whether in the next few years it could happen even though at this time it still looks impossible.

[chikator]

Hopefully. I mean if things go smoothly i dont see why not. If this DeFi hype can stand up to the expectations of those who hype it, it can achieve that if it aims to. It is a possibility if they aim to get more people involved.

[mersal]

There are many "De-Fi" (Decentralized Finance) apps out there in the crypto/Blockchain space, each with their unique features and offerings. The most popular one is Compound.Finance which provides loans and also lets lenders earn from attractive interest rates. So far, "De-Fi" apps have been widely successful providing "Banking to the Unbanked". With stablecoins mimicking traditional Fiat currencies, people can enjoy banking in a completely decentralized manner. The emergence of COVID-19 in the mainstream world, has accelerated adoption of "De-Fi" apps and stablecoins by a large rate.

If "De-Fi" apps become extremely popular and work as intended, do you think the industry will replace traditional banking in the future? Or does it have a long way to go?

Your input will be greatly appreciated. Thanks in advance.

Decentralized loans will never work in my opinion because people won't pay back the loan amount for sure so this is only hype created with the name and nothing more. Traditional banking system can be replaced only if the wealth inequality becomes lower and this is possible if people invest on the right cryptos in the early days.