Bitcoin & Crypto | Economics & Growth
Is Traditional Finance Doomed? Part I
- By Sarah Blaseby
- 5 min read
Summary
- Crypto and DeFi offer an alternative, de-regulated system for banking and finance.
- But despite the crypto boom, many believe fiat currencies will remain dominant and are more reliable for investors.
- Meanwhile, G7 central banks have responded to the emergence of digital currencies and are exploring CBDCs.
- Should CBDCs take precedence, commercial banks are unlikely to disappear and will act as the ‘middlemen’.
The End of Traditional Finance?
Crypto and the concept of decentralized finance (DeFi) are taking traditional finance by storm. And it is easy to see why: they offer alternative, more accessible means of investing and banking compared with the heavily regulated, centralised system of banks and financial institutions. For some, DeFi and crypto will eventually replace such official entities and democratise the movement of money.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.