DeFi and Crypto: New Economic Opportunities for Nations
Historically, nations with robust food and beverage industries, like Germany in the late 19th century, have benefited economically by simplifying access to local liquid resources. Today, decentralized finance (DeFi) offers similar advantages on a global scale, as highlighted by Anton Bukov, Co-Founder of 1inch.
Bukov pointed out that DeFi can onboard users at virtually no cost, compared to traditional banks that spend $100-$300 per user for document verification and account setup. Online banks reduce this to $20-$30, but DeFi requires only a smartphone and internet access.
This makes DeFi an ideal solution for the 1.4 billion unbanked individuals worldwide who are excluded from traditional finance due to high onboarding expenses. These users can begin transacting using stablecoins like Tether's USDt, opening up new economic opportunities.
Similarly, nations that facilitate access to decentralized liquidity, like crypto serving as a global liquidity hub, can unlock new economic prospects. This encourages financial experimentation and cross-border capital movement, strengthening local markets and expanding trade possibilities.
DeFi's low-cost user onboarding and crypto's role as a global liquidity hub present significant economic advantages for nations that embrace these technologies. By simplifying access to decentralized liquidity, countries can foster innovation, empower the unbanked, and strengthen their economies.
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