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

[Sirait]

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.

[1714757349]

1714757349

[1714757349]

1714757349

[CaVO32]

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.

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.

[nelson4lov]

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.

[shollyen]

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.

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.

[minersday]

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.

[abel1337]

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.

[SlimShadyMmp]

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

[libert19]

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.

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.

[ije07]

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.

[ttcsalam]

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.

[codpku]

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

[foxy]

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.

[Crypto_lion]

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.

[bobyhodob]

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.

[minairia3]

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.

[hrunya102]

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

[masterrex]

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.

[TGD]

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/#/

[taufik0911]

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

[shadowduck]

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