DeFi and TradFi: Working Together to Create a Hybrid Approach

-DeFi should not be seen as an enemy to TradFi, but rather as a complimentary service to TradFi.
-Emin Gun Sirer, the co-founder and CEO of Ava Labs, spoke on DeFi’s role in TradFi ecosystems and what users can expect in a future where both are on center stage.
-DeFi could offer services to people that TradFi doesn’t, especially when it comes to democratized access to financial services and platforms.

At the World Economic Forum (WEF) in Davos, Switzerland, Emin Gun Sirer, the co-founder and CEO of Ava Labs, spoke on the role of Decentralized Finance (DeFi) in traditional finance (TradFi) ecosystems and what users can expect in a future where both are on center stage. Sirer stressed that DeFi should not be seen as an enemy to TradFi, but rather as a complimentary service to it, at least initially.

Sirer highlighted that DeFi could offer services to people that TradFi doesn’t, especially when it comes to democratized access to financial services and platforms. He explained that DeFi can offer users an alternative approach to how they interact with financial services, and this is something that TradFi can benefit from. He believes that the two industries should work together to create a hybrid approach to how users interact with financial services.

Sirer also spoke about the need for DeFi to be regulated in order for it to be adopted by traditional finance. He argued that regulations are important for DeFi to gain more widespread acceptance and to ensure that users’ funds are secure. He believes that regulators should embrace DeFi and work with the industry to create regulations that protect users while allowing the technology to thrive.

In addition, Sirer discussed the importance of interoperability between DeFi and TradFi. He believes that the two industries need to collaborate in order to create an environment where users can easily switch between the two types of services. This will give users the flexibility to use whichever services best suit their needs.

Overall, Sirer believes that DeFi should not be seen as an enemy to TradFi, but rather as a complimentary service. He believes that the two industries should work together to create a hybrid approach to how users interact with financial services, while also ensuring that users’ funds are secure. He also emphasized the importance of interoperability between the two industries in order to give users the flexibility to use whichever services best suit their needs.