Can DeFi Create a Universal Bank for the Unbanked?
Can DeFi Create a Universal Bank for the Unbanked?! The rapid rise of decentralized finance (DeFi) has sparked an ongoing conversation about its potential to revolutionize financial services. One of the most compelling opportunities that DeFi offers is the ability to provide banking services to the unbanked – individuals who do not have access to traditional banking systems. With billions of people around the world still unable to open a bank account, can DeFi become the universal bank for the unbanked? The Problem with Traditional Banking Traditional banks have several barriers that make them inaccessible to many people, especially in developing regions. These include: Geographical Barriers Many rural areas do not have nearby banks or ATMs, making it difficult for residents to access financial services. High Fees Traditional banking systems often impose high fees for opening and maintaining accounts, conducting transfers, or accessing loans. Strict Requirements Many banks have s...