Decentralize finance or Defi is growing fastly, some think it is the future of finance, Defi provides individuals with lots of financial services, i.e. loans, investments, options, assets management, etc. while critics believe that Defi is full of risk, it can't shock financial institutions.
No, it won't.
Financial institutions will transform and adapt to any change that comes with decentralised finance.
Remember that everyone thought the emergence of fintech will be the end of traditional financial institutions (FIs). Today, the traditional FIs are still bigger and stronger even in the Fintech era.
Unfortunately, Financial institutions have a lot of financial markets sewn up, so it will take a lot of time and legislation in order to overtake them
In my opinion, not yet.
However, here in my country, credit unions are taking the place and many customers of private banks.
Thank you for sharing the question.
Cheers.
Replace, not in the foreseeable future. Co-evolve, for sure. In our recent piece,
Preprint From banks to DeFi: the evolution of the lending market
we discuss the persisting reliance of DeFi on the traditional monetary market (see section 6) but also possibility of convergence of the two spaces.
Internet, emails, voip did not replace the post office and telecommunication companies. I think on CBDC (central bank digital currencies) can remove banks from the systems if the CBDC is BC-to-P
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