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).”
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.