A Threat or Opportunity for Traditional Finance?
The emergence of crypto and blockchain industry in recent years has brought about a significant shift in the way people transact and store value additionally a lot of speculations of its negative effects are being fuelled by some of the frightening impacts it could have on traditional Financial system.
The traditional banking system has been the backbone of the financial industry for decades. However, the cryptocurrencies and blockchain technology has the potential to replace this system. by decentralization of financial transactions,
“Defi is the future of finance.” – Vitalik Buterin,
Banks being the central role in managing and monitoring financial transactions. Defi transactions faster more transparent and secure and more inclusive Could lead to a reduction in the demand for the centralised banking services i.e. loans, savings, and credit cards.
“DeFi is providing access to the same financial opportunities that have been available to only a select few for far too long.” – Yoni Assia, Founder and CEO of eToro
The crypto and blockchain industry allows for anonymous and secure
transactions that cannot be traced by government authorities. This has led to
concerns about the use of cryptocurrencies in illicit activities such as money
laundering, terrorism financing, and tax evasion.
But most especially The lack of government control over these
transactions can lead to a loss of revenue for governments a large concern for
most governmental authorities’ world wide
With the vast growing eco system of cryptocurrencies and
blockchain technology investors are now faced with the challenge of determining
which currencies to invest in. giving birth to a totally defunct investment
environment.
Terms like HODL (Hold on for dear life) FUD (Fear uncertainty and
doubt), diamond hand or paper hands have become common phrases in this
investment environment.
