EXCLUSIVE: Know why the decentralized finance industry will expand

In a world with tight borders, decentralized finance provides crucial financial independence tools for digital nomads.

The beginning of the open world is today’s expanded access to financial markets through decentralized finance.

Decentralized exchanges (DEXs) are a type of Defi activity that allows users to trade cryptocurrencies without having to deal with a central authority. External assets, like fiat currencies and precious metals, are used to peg stablecoins. In addition, lending platforms and prediction markets are common in the industry.

It’s amazing to think that in under 10 years, we’ve gone from Bitcoin (BTC) as a digital currency (and personal bank in the classic sense) to Wrapped BTC, farming, and all the other crypto alchemy.

Why Defi?

Defi may be used in a variety of ways, which reflects the depth of its integration and the breadth of its applications.

Defi has proved extremely beneficial in terms of wealth growth and lower financing costs, bringing new meaning to the phrase “finance for everyone.” Defi broadens the scope of financial transactions while considerably cutting their costs by eliminating middlemen through the use of blockchain technology. Defi is undeniably the way of the future in finance and other businesses.

Cities that have decided to become global ledger of blockchain technology

Cities as a whole are increasingly embracing the new paradigm and preparing to welcome crypto-savvy residents. Seoul, for example, has devised a plan to become a global leader in blockchain technology by the year 2020.

Park Won-soon, the city’s mayor at the time, announced the Promotion Plan for Blockchain City Seoul, which would later become the foundation for the Fourth Industrial Revolution.

Several administrative agencies were already adopting blockchain technology in 2018 prior to the presentation.

The new proposal, on the other hand, would broaden the reach of technology to include direct democracy, online verification, mileage management via the S-Coin, the Seoul Citizen card, and other initiatives.

Governments that support Digital coins

It has become clear that governments’ refusal to recognize the possibilities of Defi and blockchain might result in a slowdown in their economies. The introduction of the central bank digital currency (CBDC) has been a leading indicator of governments’ willingness to use blockchain-based technologies.

The Atlantic Council has created a platform that tracks all nations’ CBDC programs at various levels. The pilot versions have already been introduced in Ukraine, China, Sweden, South Africa, Malaysia, Singapore, Thailand, South Korea, Saudi Arabia, the United Arab Emirates, and numerous more countries.

ALSO READ: Crypto investments continue with strong market sentiments

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing