The co-founder of the blockchain company Injective Labs is confident that the transition of traditional financial companies to DeFi will significantly accelerate the development of the industry.
Injective Labs CEO Eric Chen said that the decentralized finance (DeFi) industry has problems with large fees, scalability and liquidity.
Right now, Chen says, the entire DeFi industry is focused on solving these problems, but progress is slow:
“We still have a lot of problems to solve before billions of users join DeFi. Over time, the issues of high fees and scalability will become more and more pressing. The future of the industry depends on whether they can be solved.”
According to Chen, now the industry is growing due to the investments of institutional investors. Traditional financial institutions joining DeFi, Chen says, will still play an important role in the future of the industry. A well-regulated environment is crucial for such organizations, so the fight against money laundering and the development of the “Know Your Customer” principle in the blockchain industry will push traditional companies towards DeFi, the businessman believes.
The head of Injective Labs added that DeFi is much easier to regulate than traditional financial systems. The mission of decentralized finance, Chen says, is to provide secure and transparent financial services. Therefore, it will be easier for regulators to work with DeFi than with “obsolete financial structures”.
Recall that earlier DeFi-company Scallop joined the Payment Card Security Standards Council.
Source: Bits
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
