Decentralized finance (DeFi) offers a more affordable and accessible model compared to traditional banking, according to Anton Bukov, co-founder of 1inch. During Dutch Blockchain Week in Amsterdam, Bukov emphasized that DeFi eliminates many onboarding costs that limit access to the current financial system.
Creating a user account in a traditional bank typically costs between $100 and $300, says Bukov. For every user, digital banks must pay between $20 and $30 in operation costs. Moreover, thanks to the low technology needed, DeFi platforms can be accessed by almost everyone at a low price.
The model enables anyone worldwide to join the global economy without going through expensive banking procedures. DeFi enables people to pay each other swiftly with stablecoins like Tether (USDT) without the help of conventional intermediaries.
DeFi Expands Access and Strengthens Global Financial Inclusion
According to Bukov, 1.4 billion unbanked people might find DeFi attractive because it is easy to use and has few requirements. Because verification in DeFi is easy and there’s no significant need for infrastructure, the system can help people in regions where traditional finance has limited reach.
He mentioned that working with people without bank accounts is costly and pays off little for traditional banks. Meanwhile, DeFi is built on a decentralized structure, so it doesn’t require expensive systems or central authority for everyone to participate.
DeFi doesn’t make users undergo strict qualifiers or wait for lengthy approval. It enables users to open digital wallets and gain rapid access to financial tools to move money online without getting help from banks.
Consequently, he concluded that DeFi’s structure can extend the use of money while making liquidity more accessible faster. Because crypto and blockchain transactions are decentralized, you can move your assets worldwide easily and efficiently.
According to him, those countries increasing access to decentralized liquidity are well-placed for growth as the world economy advances. The connection between crypto and international trade, he explained, is that more activity usually leads to stronger and better results.
Conclusion
Anton Bukov spoke during Dutch Blockchain Week about how DeFi is helping transform financial inclusion. Because they are open to everyone and don’t require money to start, DeFi platforms provide an effective alternative to traditional banks.
