Anton Bukov, co-founder of 1inch, a decentralized exchange, has explained that operational procedures in Defi are much cheaper than those of traditional banks. During the Dutch blockchain week in Amsterdam, Bukov explained that verifying documents and setting up accounts for a user at a traditional bank can cost $ 100-300. For comparison: online banks are only $ 20-30 per user. As an alternative, the use of decentralized financial platforms is just as simple as a smartphone and an internet connection.
According to Bukov, Defi can be used with few or no prior costs. Because no equipment is involved and the system does not require extensive verification, transactions are useful. Anyone who has the internet can use it to easily send and receive payments. With its simplicity and cheap structure, Defi can serve more people than traditional banking, because it can reach 1.4 billion unpaid people.
Defi unlocks global financing for the offended
Onboarding traditional finances is expensive, so many have no access to it. Bukov said that leaving the financial services of the financial services is logical because it does not offer better financial results. He noted that nobody would invest such a large amount in them, knowing that he would never see those funds again.
Unlike traditional banks, where the accession threshold is high, Defi offers people with less access to finances to become a member of the global economy. Bukov said that Defi will enable users to handle real-life financial transactions with stablecoins such as Tether (USDT). This will make things accessible that have never been possible for them before. He explained:
“You can just get a phone, gain access to the internet and you can exchange your chicken for USDT,”
Defi feeds global liquidity and economic growth
Bukov also pointed out that Defi helps to offer liquidity on global access. He believes that cryptocurrency represents an independent economy, supported by billions of transactions carried out through decentralized systems. Liquidity in the financial sector makes it possible to try new strategies, channels for achieving returns and international companies.
He pointed out that those countries make it easier for investors to gain access to global liquidity, will probably benefit from new economic changes. He suggested that more involvement in crypto can be comparable to international trade, and indicates that countries generally do better as they participate more in global trade.
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