Quote from: avikz on June 13, 2022, 06:46:53 PM

Quote from: lizarder on June 13, 2022, 06:35:45 PM

DeFi or decentralized finance can threaten the world of traditional banking, because of the shift in lending, even DeFi itself is known to be able to provide loans like other traditional banks.

Cryptocurrency is not here to threat the traditional banking system. Defi is a different kind of lending which requires a collateral in the form of crypto. Can you take a home loan from a defi platform? Can you take a car loan from a defi platform? The answer is no!

Defi is here to exclusively cater the crypto community. It can't fulfill the need of traditional consumers and hence I don't see a threat to the banking system anywhere. Also it is not practical for anyone to move to complete crypto without the need of banking. Some exceptions can happen but largely it's not really a convenient mode of payment. So there's no competition itself.

Indeed, there is no real threat to conventional banks with the developments that occur in crypto, but many developing countries are starting to be wary of this problem, they can't even take home or car loans from the defi platform, but the worry is not only here.

Quote from: Yamifoud on June 13, 2022, 09:27:29 PM

They're not OP instead, they will fight against the growth of crypto as they think this was a threat to them. Because the moment that crypto becomes legal, many will no longer use the banking system anymore. Of course, this never makes them die or the collapse of the banking system, however, this will cause a downtrend of their possible income.

Digitalization is a new trend now if we see, Banks have also upgraded their system to cope with the demand of digitalization. This is a way to a healthy compilation against cryptocurrencies.

This is what they are worried about, not about the change of conventional banks to crypto, but more about financial effects that cannot be controlled by the state, so far there is no regulation that can regulate all of that, even in crypto there has never been such a thing as inflation, financial freedom can destroy a system and I think this is the big problem

Quote from: crzy on June 13, 2022, 09:42:27 PM

Banks will stay, they might cooperate later on especially now that many are into blockchain which helps them in many ways. They might fight with those fake projects but can’t afford to mess with Bitcoin because this market can’t be controlled by those institutions so they have no choice but to adopt as well. Banks will always be a bank, what’s good for them they will take it.

Openness in accepting progress is very important to care for differences, for example crypto is starting to be juxtaposed with conventional banks, this can actually keep the bank running according to its function, but what needs to be added is regulation to take care of all of it properly