DeFi Shines in Areas Where Banks Struggle, but Fragmentation Remains a Barrier
Decentralized finance (DeFi) is gaining traction in regions with weak banking systems, such as Sub-Saharan Africa, Latin America, and Eastern Europe, where it offers financial tools and services previously unavailable.
The user-friendliness and security of DeFi are seen as advantages over traditional banking in these areas. However, challenges like complex onboarding, regulatory uncertainty, and hacking threats are slowing adoption.
Fragmentation in liquidity is also a major hurdle, making markets less efficient and causing issues like high slippage. Despite these growing pains, experts believe that solutions to these problems will drive significant future growth in DeFi.
Clever Robot News Desk 19th September 2024
