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

[Chukwunonso]

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.

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[@baoli]

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

[ElmedoRator]

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

[dataispower]

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.

[shoreno]

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 .

[hulla]

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.

[wiss19]

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.

[casperBGD]

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

[Bossfidelity]

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.

[zasad@]

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.

[Vaculin]

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.

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.

[Abiky]

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.

We're still in a hype phase, so anything can be expected in the following months. I'd say that the "De-Fi" space needs more time to mature before it can be considered a "replacement" of traditional banking. Even if it improves, it may not be able to replace banks in the future, as they dominate the world's economy. "De-Fi" will become widely used by the "unbanked" serving its particular use cases in the mainstream world. There's still a lot of room for growth, so I'd expect "De-Fi" to become robust in the long term.

I believe that once the hype cycle is over, this emerging industry will be put to the test. Only projects with active development, innovation, and real use cases for the mainstream world will survive in the long run. For what I know, nothing is perfect. There are many flaws adherent to smart contracts providing "De-Fi" services to everyday users. Banks on the other hand, are much more secure and reliable, leading people to trust them more than anything else. Besides, "De-Fi" is becoming practically useless with the extremely high fees on the Ethereum blockchain. Last time I've checked, I needed to pay $126 (USD) in fees just to withdraw my tokens from a "De-Fi" protocol known as "Instadapp". This is insane, as it's unpractical for the average person like me. Unless ETH upgrades to PoS and becomes more scalable, "De-Fi" adoption will be limited. While there are other scalable blockchain networks like TRON and EOS, they lack an ample ecosystem of dApps.

All in all, no one knows what will happen in the future. "De-Fi" could either survive or fade into oblivion in the long run. It's extremely risky right now, so I'd advice to proceed with caution. We should give it some time, for the space to mature. Only then, we can determine if "De-Fi" will pose to be a threat to banks' existence (which I doubt it) or not. Just my thoughts

[target]

Since its being used right now by crypto users, then it must have the future and could evolve into something bigger.  If it can't replace the traditional banking system then there is no purpose in developing it. It is however going to be challenging because the banks today are also developing their own digital currencies to match the projects that crypto has offered.

[ameliana]

I don't think that the Defi program can replace the traditional banking eye in the future, you should know that Defi is a new program and even I personally have no interest in taking part in it. this is only a HYPE and will not possibly replace the traditional banking currency.

[SistaFista]

No doubt that cryptocurrency will replace the traditional banking in the future, defi projects are the building the platform for it.
People will prefer to manage their money freely with their own will than using other central services like banks.
The good thing in defi for me is everyone can using stable coins without fear to volatility of crypto.

[wack slacker]

It is difficult to conclude whether DEFI can replace banks because they are just getting started and the capitalization of DEFI projects is very small for the banking market. The DEFI projects are overrated, even though they are new projects. When the government sets cryptocurrency regulations, DEFI is the real rival of the bank.

[codpku]

this The topic just same like the other person say couple years ago
Will bitcoin replace money??
Ya no one know what happen in the future, but theres always a changed in our life, it will born new einstein that can make great idea and born a good project for human being
We must adaptive with new system we have to face the change or we get left behind
So i believe someday bitcoin or defi will replace the old system of currency or money

[Abiky]

Since its being used right now by crypto users, then it must have the future and could evolve into something bigger.  If it can't replace the traditional banking system then there is no purpose in developing it. It is however going to be challenging because the banks today are also developing their own digital currencies to match the projects that crypto has offered.

At least, "De-Fi" will prove to be an alternative to the existing banking system. It may not be able to replace it, since governments rely on central banks for the circulation of money in the mainstream world. The unbanked will be able to enjoy all of the benefits of traditional banking (sort of) by using "De-Fi" platforms across various blockchain networks. ETH, being the most popular smart contract platform in the world, has attracted the likes of developers and individuals alike. Most (if not all) "De-Fi" platforms are built there because ETH is a battle-tested blockchain network with focuses on decentralization above anything else. While current fees are ridiculously high, there's already a scaling path for the "De-Fi" industry to keep moving forward.

Despite the current hype surrounding "De-Fi", it's still not ready for widespread use in the mainstream world. Besides performance issues, there are many flaws inherent within smart contracts which powers the "De-Fi" ecosystem. It may take a long time before the industry matures, in order to become a viable competitor against the traditional banking system of today. Considering that "De-Fi" is still experimental, it's not recommended to put more money on "De-Fi" apps than what you're willing to lose. Let's hope that as the crypto/Blockchain space grows, "De-Fi" will advance in development, innovation, and most of all, mainstream adoption. Just my opinion

[ilovealtcoins]

DEFI will be more popular, but it cannot replace banking, even though it offers banking services. DEFI is currently just helping people to make a profit by taking deposits and paying interest, decentralized loans are impossible.
Banks are governed by the government and they keep rates and interest rates more stable. Also, the bank performs several functions such as paying taxes and paying bills monthly.

[judeafante]

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.

We cannot replace the banking system it's also an evolving industry and DeFi is not yet secured way to do banking I don't think banking is replaceable even in the future, they have their own industry to serve so we prefer them to exist together to serve all sectors of the industry, it's a win-win situation for both of them.