@leeliying8

Decentralized Finance (DeFi) has the potential to disrupt traditional banking but is unlikely to fully replace it. DeFi offers permissionless, transparent financial services like lending, borrowing, and trading through blockchain, bypassing intermediaries. This reduces costs and increases accessibility, especially for the unbanked. However, traditional banks provide stability, regulatory oversight, and consumer protections that DeFi lacks. Issues like smart contract vulnerabilities, scalability limitations, and regulatory uncertainty hinder DeFi’s mainstream adoption. While DeFi can complement banking by offering innovative alternatives, banks’ established trust, infrastructure, and legal frameworks make them resilient. A hybrid model, blending DeFi’s efficiency with banking’s reliability, seems more plausible than outright replacement.

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