DeFi – The Key to Unlocking Global Finance for the Unbanked

At the Blockchain Week in Amsterdam, Anton Bukov – co-founder of the decentralized exchange 1inch – shared noteworthy insights about the superior potential of decentralized finance (DeFi) compared to traditional banking systems. According to him, DeFi is not only simpler but also significantly reduces operational costs, opening up financial access to billions of people worldwide – especially the 1.4 billion people who have been "forgotten" by traditional financial systems. Operating Costs: DeFi Outperforms Traditional Banks Bukov emphasized that establishing and verifying accounts at traditional banks can cost between 100 to 300 USD per customer. Meanwhile, modern online banks have streamlined this cost down to about 20–30 USD. However, with DeFi, the entire process is almost without any initial costs. Users only need a smartphone with an internet connection to start using financial services – no paperwork, no complex verification. This makes DeFi a particularly suitable solution for communities that have difficulty accessing banks, lack official identification, or live in areas without financial infrastructure. Global Finance Is No Longer Limited Anton Bukov shared that accessing traditional finance is expensive, and for banks, serving unprofitable individuals is considered "not worth the investment." In contrast, DeFi operates in the opposite direction: with extremely low costs and high accessibility, it allows everyone – regardless of country or circumstances – to participate in the global digital economy. He illustrated that a farmer could "trade a chicken for USDT" if they have a phone and internet. This demonstrates the potential that DeFi offers in digitizing and globalizing everyday economic activities. DeFi Promotes Liquidity and Global Economic Growth Not only limited to serving individual users, DeFi also helps countries access global liquidity sources. Bukov believes that DeFi is like an independent economy, operating thanks to billions of transactions on decentralized systems. As a result, users and businesses can experiment with new financial strategies, explore innovative investment channels, or deploy international business models. He also noted that countries open to decentralized finance and encouraging investors to access global liquidity will have the opportunity to capitalize on new economic waves. Participating in the DeFi ecosystem can bring benefits similar to opening up international trade – the more you participate, the stronger the development. Conclusion: DeFi – The Gateway to Financial Equality DeFi is not just a technology trend; it is a true financial revolution. With low costs, widespread accessibility, and the potential to drive economic growth, DeFi is opening doors for billions of people who have been sidelined by the traditional financial system. As Anton Bukov stated: "All you need is a phone and the internet, and you can start participating in the global economy." DeFi is the key to unlocking the door to a more inclusive and equitable financial future for everyone.