Crypto and DeFi: The (R)evolution is Afoot

Go to original source: Catalyst Insights

by Sune Sorensen

THE (R)EVOLUTION WILL BE DECENTRALIZED…

The global monetary & financial system is heading for a paradigm change. The next SWIFT system and financial market structures are being built all around us, from the grassroots up and with​​ little regards for national borders and the analog reality that accompany them.​​ The (R)evolution is afoot.​​ 

Buckminster Fuller – the savant architect and Renaissance man – stated that;​​ “You never change things by fighting the existing reality. To change​​ something, build a new model that makes the existing model obsolete.”

What has been largely considered as Millennial & Gen Z playthings are emerging as the building blocks for ‘a new model that will make the existing model obsolete’​​ in due time.​​ While Crypto and DeFi have largely been looked upon as speculative assets to people in developed markets, in emerging markets they are already forming the beginning of a new financial system.​​ 

According to a recent report from Findex;​​ “Globally, about 1.7 billion adults remain unbanked. In 2014 that number was 2 billion. Virtually all unbanked adults live in developing economies. China and India, despite having relatively high account ownership, claim large shares of the global unbanked population because​​ of their sheer size. Home to 225 million adults without an account, China has the world’s largest unbanked population, followed by India (190 million), Pakistan (100 million), and Indonesia (95 million).”

A map of the world Description automatically generated with medium confidence

Source:https://globalfindex.worldbank.org/sites/globalfindex/files/chapters/2017%20Findex%20full%20report_chapter2.pdf

For billions of people this is the first time they can access a range of financial services and global assets. The initial wave of FinTech brought financial services onto the Smartphone, DeFi takes it to the next level. Innovation is being unleashed on a global scale, and much​​ of it is driven from the ground up and it is decentralized. Collectively DeFi is the App that is making blockchain technology user friendly, it has the potential to be the bridge to a new paradigm.

There now is a DeFi equivalent for​​ every traditional financial instrument and function.​​