And a lot of these expenses are redundant when it comes to DeFi. This isn’t a case of “whatsaboutism” it’s a true statement that banks will never be able to be as efficient as DeFi ever.
Yes DeFi has some flaws here and there, but it’s only been around for 7 years yet it’s already showing so much potential.
And this improvement and potential will only get better as time passes by especially with more and more money being poured into the DeFi scene each year.
BitDAO alone has already invested hundreds of millions of dollars into DeFi.
I don’t think banks will disappear, that would be a far fetch. But the sure will dwindle in power sooner rather than later if we keep up this pace.
True, but it’s also access and elitism. When a guy managing a project that has 80 Million in TVL is doing an AMA on discord and stops for a second to grab a bite of cereal because he’s been hammering it for four straight days that just confirms for me that the banks can go fuck themselves. Pardon my language. There isn’t an adequate equivalent for that sentiment.
Banks also pay for regulatory compliance, which defi doesnt have. Eg a large portion of a banks funds need to be put aside to meet prudential capital requirements, whereas you have tether, usdc and other stablecoins which could fail and leave their holders with a lot less than $1 per coin.
Defi brought a lot to the table, such as unrestricted lending and borrowing of assets without delays and the like, and the fact that there is no middle man adds to the appeal. With the platform Govworld is building, activities will be more seamless with collateralization of any approved altcoins or NFTs.
Definitely not. Banks are way behind the times
Banks also pay for reversing fraudulent transactions, vetting borrowers, insuring your deposits, interoperating with arbitrary retailers, and many other things that you want.
You left out record stock buybacks and record executive bonuses.
Just trying to be the devil’s advocate here, but what about fintech neobanks like, say, Robinhood. Their cost-structure is already much closer to that of a mature defi project.
The real difference imho, lies in the increased competition in defi. Charge high fees and your users will quickly migrate to a cheaper competitor.