Ultimate magazine theme for WordPress.

The Rise of DeFi and the “Going Bankless Movement” – Forbes Advisor Australia

Simpson said the idea of ​​digital dollars is already widespread since we rarely exchange physical cash anymore.

“In my opinion, it is just the underlying technology that is being used to drive development towards crypto and decentralization,” he says.

He adds that due to ongoing currency devaluation caused by inflation and stagnant wages, he believes that as Bitcoin matures, more people will choose to keep Bitcoin instead of money in a bank.

“Can Bitcoin take over the US dollar? It could be, but the chances of it happening in our lifetime are probably very, very low. But I foresee a world where Bitcoin is a globally recognized currency and asset and people trade it.

“I think as time goes on, more and more employers, particularly those working with remote freelancers and international companies, will continue to be far more proponents of cryptocurrencies just because, frankly, it’s an easier payment method.”

Montfort assumes that cryptocurrencies will also complement existing systems and, for example, provide a stable medium of exchange in countries or regions with hyperinflation and unstable local currencies. Additionally, he sees crypto tokens playing a role in niche gaming communities or loyalty programs, improving traditionally costly and slow cross-border payments.

“All in all, speculative tokens will likely need more support in terms of real-world connections, rather than just relying on pure speculation.” For example, the rise of tokenization of real-world assets will provide more ways in which blockchain can support the real world,” he says.

“In addition, local country stablecoins will enable the facilitation of more traditional transactions to leverage blockchain rails.” Examples of stablecoins backed by fiat monetary assets include USDC coins and Tether (USDT), both of which are on linked to the US dollar.

Montfort argues that it is better to view DeFi as a replacement for traditional finance (TradFi), rather than a reimagining of a Finance 2.0 model where blockchain improves current inefficiencies.

“For example, some in the Web3 space have argued against the problems at TradFi related to fractional reserve banking, but failed to realize that by eliminating this model we lose credit creation, so goodbye to home, car and personal loans. “ TradFi has gaps and problems, but in many ways it is also good.

“As governments provide clear guidelines and perhaps even encourage innovation in this area, trust and acceptance are likely to increase.”

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers

Comments are closed.

%d bloggers like this: