Currently, the world’s financial system is encountering challenges from the pandemic. It is no longer news that the United States government proposed a $2.2 trillion bailout for the stock market in recent times, as a relief measure for the current crisis within the traditional markets. Hence, it is clear that centralization is indeed powerful in the traditional financial system.
Nonetheless, it has been reported that there is a challenge when it comes to the distribution of this wealth. In recent times, Lou Kerner of CryptoOracle talked about this issue in an interview with BlockTV. He said there is nothing wrong with the planned $1200 for each person, but when we consider the sums received by rich corporations, it is not good enough.
According to Kerner, DeFi might be critical regarding the current situation when the market is influenced by volatility. The rise of DeFi could give some app in its domain the chance to achieve mass adoption, he noted.
Users will be able to evade governments’ bans or restrictions and transparency will become clearer, as DeFi continues to grow. Blockchain technology integration would have made it quicker to distribute the current stimulus plans. DeFi may use the opportunity to enter the market when the current pandemic is over.
There are several benefits of DeFi but Loong Wnag of Ren Project CTO thinks that the journey of DeFi to take over the traditional markets is quite long. According to him, the first thing to do is to solve the interoperability issue. This will help the space to grow and also permit users to access any desired asset.
Nonetheless, DeFi needs to have more liquidity and improve mediation between different blockchain networks, he said. In addition, there is limitation in the space regarding the type of collateral it currently accesses, which is only found on Ethereum. Therefore, interoperability issues must be solved.
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