As market price actions confuse traders and market makers, experts and analysts in the Bitcoin nodes sphere reacted to a consensus about vital issues last week. A consensus was made that decentralized finance (DeFi) and centralized finance (CeFi) can coexist. This coexistence in the nearest future will ultimately produce a blend of financial services and products useful to users.
On the 26th of January, 2022, the Global Blockchain Business Council consulted Cointelegraph to moderate the conference discussion “Can DeFi and CeFi coexist? The video circulating showed panelists answer and debate questions relating to banking the unbanked, and the general adoption of crypto. The panel also discussed whether not innovation directly translates to disruption of conventional banking and finance systems.
Crucial points discussed include the need for better transparency and education in the crypto sphere. Furthermore, discussion about how financial inclusions were achieved courtesy of clear-cut legislation and smooth onboarding strategies. Issues surrounding the Bitcoin Lightning Network and popular blockchains such as Solana we’re also discussed. DeFi protocols, as well as Uniswap, were also looked into.
The president and chief legal officer of Merkle Science, Mary Beth Buchanan, as regards education, made some interesting comments. She affirmed that many individuals do not have access to conventional finance. Therefore, the winner in this race of disruption will be the project that can reach and cater to individuals in this category. These are individuals with zero access to DeFi, therefore, there’s a need for education.
The CEO of Kaiko, a digital asset data provider, Ambre Soubiran, agreed with Marry. She added that the solution to expanding the reach of DeFi projects is via onboarding, education, and recognizing the risks. People are looking for an easy way to reset passwords other than having to remember 24 words.
The President and founder of blockchain Orbs, Daniel Peled, is also very enthusiastic. He’s looking to create an avenue for the two billion people across the globe towards financial inclusion. However, he believed that the industry is still at its infancy stage.
He then reiterated Soubiran’s idea about a lot of people not having access to DeFi apps given the products are tech-heavy and complex. A lot of individuals still don’t have an idea on how to safely secure their funds on DeFi apps.
Although, for Peled, the issues are ways more than just educating individuals. He believes it’s more about creating a level-playing field that will hold everyone to the same rules regulations.
There’s been a massive quantitative easing. According to data available, 70% of all the money circulating in the world was printed in the last two years. Presently, young individuals are unable to hold limited assets like equity, gold, or real estate. In fact, these young individuals have not authorized investors who have the chance to key into opportunities at the earliest stage.
These individuals are primarily the ones adopting Defi given the opportunities that present themselves in the tech compared to other available options.
To this end, Bitcoin’s creation was an attempt to help solve these issues. As the very first successful project that separates the states from money, it retains an apparent insurance rate. This then helps to achieve a monetary network of equal participants while offering greater transparency.
The CEO of Genesis Global, a digital currency broker, Michael Moro also agreed with Peled’s perspective on demographics. He noted that individuals in the west are more involved in various DeFi projects. The experience and user interface aren’t great either as one needs to be somewhat tech-savvy to be able to participate with DeFi. The protocols need to be a lot simpler for individuals to get involved.
Finally, the panel did agree that a combo stink of onboarding and education will create and help establish a better financial inclusion.
Clearly, regulation is top of the agenda in 2022. However, it should help promote growth in the crypto space since regulation will offer more freedom. Moro added.
The former head of derivatives commodities and markets at Borsa Italiana, Nicolas Bertrand, jas the last word about the future of CeFi and DeFi space. When inquired if he believes DeFi will disrupt CeFi services, he gave an affirmative answer. He said DeFi will disrupt CeFi exactly like computers did telegraph.