Coin? Bank? Why is Defi becoming so popular?
- Defi is leading the innovation in finance
Since Defi treats virtual and crypto assets, there are no borders between countries, and it is difficult to create controls or policies. And Defi is a financial service that is rapidly spreading internationally and has a high potential for further expansion.
2. Defi and CDBC expect to lead the innovation in digital finance
Experts predict that the areas of Defi and CBCD will be integrated and the synergy effect will be maximized. Since CBCD is a digital currency issued by the central bank, it is expected that services with higher interest rates would be created by using CBCD in traditional financial institutions and among Defi platforms.
3. Attract investors with the higher return rate
According to the Herald Economy in Korea, in June 2021, compared to the previous month, the TLV of Defi increased 60 times to about KRW 76 trillion, and the number of active wallets more than doubled. Among Defi services, the loan market takes the largest market share. It is followed by the exchange service. And it is expanding to savings and asset management.
4. From cryptocurrency to legal currency
El Salvador’s parliament passed a bill to approve Bitcoin as a legal currency on June 9, 2021, making it the first country to recognize Bitcoin as a legal currency. As a result, countries with insufficient infrastructure for financial services are considering adopting the same policy.
