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Decentralized Finance (DeFi) is emerging as a revolutionary force, offering unparalleled advantages over traditional finance, particularly in onboarding costs.
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As DeFi platforms become increasingly accessible, they present a unique solution for the estimated 1.4 billion unbanked individuals worldwide.
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Anton Bukov from 1inch emphasized, “Onboarding to DeFi literally costs zero,” highlighting the stark contrast to traditional financial institutions.
Explore how DeFi reduces onboarding costs and enhances financial inclusion for the unbanked, transforming global finance as articulated by 1inch’s Anton Bukov.
Reaching 1.4 Billion Unbanked Users
In his remarks at Dutch Blockchain Week, Bukov noted that traditional banking imposes hefty onboarding fees, resulting in immense exclusion. While banks may spend between $100 and $300 per user to establish accounts, DeFi allows anyone with a smartphone to participate in financial markets. This accessibility positions DeFi as a critical tool for achieving financial inclusion on a global scale.
Bukov stated, “That’s why we have 1.4 billion people on the planet who are unbanked. No one’s going to invest those hundreds or tens of dollars into them because they will never return to them.” This viewpoint underscores the essence of DeFi — it eliminates barriers that have historically hindered access to essential financial services.
Moreover, DeFi’s integration of stablecoins, such as Tether’s USDt (USDT), allows users to make transactions without requiring traditional banking infrastructure. “You can just get a phone, access to the internet, and you can exchange your chicken for USDT,” he explained, illustrating how DeFi facilitates economic participation.
DeFi Allows Access to Global Liquidity
Moving beyond inclusion, Bukov articulated that the core advantage of crypto lies in its capacity to provide unrestricted access to global liquidity. He explained, “Crypto isn’t just about adopting stablecoins or building national digital currencies. It’s a growing global liquidity hub.” This liquidity enables a variety of financial activities, such as yield farming and cross-border transactions, truly expanding the scope of financial possibilities.
As the crypto ecosystem continues to mature, Bukov suggested that nations with regulations fostering easier access to this liquidity will thrive economically. “The more countries trade with each other, the more they succeed. Crypto works the same way,” he said. This perspective challenges traditional economic models, proposing that decentralized finance can drive global economic cooperation.
Conclusion
The insights shared by Anton Bukov affirm that DeFi is not merely an alternative to traditional finance but a transformative force capable of reshaping economic landscapes. By addressing onboarding costs and democratizing access to global liquidity, DeFi stands poised to benefit billions and facilitate unprecedented financial interactions. As internet access becomes more prevalent, the impact of DeFi will likely amplify, further integrating unbanked populations into the global economy. The future of finance is here, and it is decentralized.
