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

[JungleOnion]

it could threaten the traditional banking system to the point of replacing it all together or it can also influence a restructure in current systems to adapt to this new concept. In any case we might still be too early to tell.

[1714540442]

1714540442

[1714540442]

1714540442

[Reid]

I doubt that.
It's not just about loans and savings.

Acceptance by the public is also a must.
And then, there is the government and of course, banks will fight bank.
Creating their own, de-fi or maybe just digital cash which they already have with their plastic cards.
Which continues to another things.
Shops acceptance. Yes I am now banked because of De-Fi but how will I use it without shops accepting whatever they will use. i.e. QR code or still plastic cards. 

[bbcolex]

Maybe, its not far off the possibilities. If things go well, why wouldnt they venture on something bigger? If they could live up to the hype theyre on right now, that would be nice and if they could reach something bigger, that would be great.

[plvbob0070]

DeFi may be increasing its popularity nowadays but it's still way too far to reach or even replace traditional banking. We are seeing the hype with DeFi but the recognition is still limited mostly among crypto space. Although we are not sure whether this hype will remain for a long time, it will be hard to replace the traditional since the majority are still relying on the banks.

But honestly, DeFi does not really need to replace the traditional bank as long as DeFi is getting recognized and be able to do its purpose.

[tungaqhd]

DeFi may be increasing its popularity nowadays but it's still way too far to reach or even replace traditional banking. We are seeing the hype with DeFi but the recognition is still limited mostly among crypto space. Although we are not sure whether this hype will remain for a long time, it will be hard to replace the traditional since the majority are still relying on the banks.

But honestly, DeFi does not really need to replace the traditional bank as long as DeFi is getting recognized and be able to do its purpose.

The hype drives people to come up with ideas that are too far from reality, they always think big things they have been deceived by a trend and by the whole community but the essence of the hype is such that, the rapid pumping and popularity then end in silence and slowly. So I can only say that DeFi has done a good job of it, creating value for investment in the community, considering the replacement of traditional banks, talking about risks and advantages, DeFi is just a small spark while the bank is a lot of volcanoes

[yhiaali3]

Of course, “De-Fi” applications have become very popular, and they are growing and flourishing day after day in a big way. The spread of the Corona virus in the world has contributed to the rapid acceptance and spread of these decentralized applications that depend mainly on cryptocurrencies and decentralized financing, but I think it is too early to judge De-Fi replaced the old banking system, it will have to go a long way before then, because this old system is able and difficult to replace easily, especially because the world's governments do not accept cryptocurrencies yet.
We will have to wait a while until we see results or replace members of old governments with a new generation that is more open to technology and cryptocurrencies.

[Argoo]

DeFi projects, providing services for loans, credits, the issuance of interest on depository, thanks to smart contracts, began to perform the traditional functions of banks and therefore, of course, they will press banks in this. However, one can hardly expect that all people will use only these services. A certain part of people will use the services of banks for various reasons. Therefore, I think that the services of DeFi and banks will exist in parallel.

[Eternad]

it could threaten the traditional banking system to the point of replacing it all together or it can also influence a restructure in current systems to adapt to this new concept. In any case we might still be too early to tell.

Replacing it still seems far especially in my country were fiat is very much needed in different transactions and stores since most people here didn't want to adopt change, the online banking only just made popular only these time in my country. It will depend on what country will adopt DeFi, those advance and open for crypto and blockchain can replace their bank or partnered with their bank as their more on online transactions now. Maybe once it became too hit and successful in other country, that's the only time will  be able to think of adopting.

[Inkdatar]

DeFi projects, providing services for loans, credits, the issuance of interest on depository, thanks to smart contracts, began to perform the traditional functions of banks and therefore, of course, they will press banks in this. However, one can hardly expect that all people will use only these services. A certain part of people will use the services of banks for various reasons. Therefore, I think that the services of DeFi and banks will exist in parallel.

During these times Defi becomes well known and starting to be popular because of the hype happening to this project. Yes they offer good services like loans but in my country having this services to replace bank is impossible. It needs first to adopt crypto since mostly here doesn't know yet this kind of technology. Maybe in other countries that already adopted Blockchain technology. The traditional banking here is very important to the daily lives of the people.

[samcrypto]

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.

That's why many investors are coming into DeFi projects because of a higher interest and its hype right now but its not enough reason to replace banks since banks is not just about the interest, they offer many services that until now is very useful.

DeFi will not replace banking industry as if the bankers will easily give up their company well in fact they already adopted blockchain technology that can help them deal with the growing technology, so if DeFi's goal is to replace traditional banking, then its long way to go.

[SaShiRaJaVu]

it could threaten the traditional banking system to the point of replacing it all together or it can also influence a restructure in current systems to adapt to this new concept. In any case we might still be too early to tell.

You really do not need to wait for an unforeseen future to understand this, nothing is going to replace the baking system. Why is everyone imaging things that is not even possible in the near future, there are countries banning the entire technology and some are extremely confident that these could replace traditional banking which is a joke i am hearing for a very long time from members who does not have a clue about finance .

[Abiky]

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.

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

[bttmember]

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 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.

[kingzpro]

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.

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.

[BeginToMine]

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.

[CryptopreneurBrainboss]

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.

[Stedsm]

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.

[Abiky]

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.

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

[rexxarofmoknathal]

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.

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.

[optimisticcm]

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 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.