What is the Impact of DeFi on the Traditional Financial System?

[Suba]

Although DeFi was initially only an experiment by developers with crypto tokens, DeFi as a decentralized financial system built on the blockchain network has had a very significant impact on traditional finance.

According to the Bank for International Settlements (BIS), it not only has an impact on the macro economy but also on the stability of traditional finance, moreover, the DeFi platform is often used as a medium of profit for a group of people and institutions, the wave of massive crypto adoption by whales will only widen the gap between the poor and the rich.

BIS also observed that DeFi offers convenience and speed at low costs, so it will have a significant impact on traditional finance, so the relationship between the crypto world and traditional finance will be stronger and closer, so that directly or indirectly the impact of risks in the crypto world will affect traditional finance,

 

[riberet19]

DeFi is developing more and more, and it is increasingly attracting more capital, and the TVL of DeFi is starting to be quite high, so I believe that every year that passes it will become more and more relevant for global finance.