A United Kingdom-based media mogul and former banker Alexander Lebedev has heaped praise on the Decentralized Finance (DeFi) sector and called it revolutionary. He also went on to say that he is using his banking expertise to launch a new platform called Bank 2.0 which will be based on DeFi principles.
Speaking to a well-known British outlet The Independent, Lebedev was all praises for the sector and was of the opinion that DeFi will eventually disrupt the “parasitic” banking system which is based on Oligopoly with only a few well-connected individuals making and imposing their decisions on the rest of the community. He also predicted a grim future for most of the workforce involved in the sector and believed that massive layoffs will become quite common in the very near future.
According to Lebedev, the explosive growth being currently experienced by the the DeFi platforms around the world is, however, unsustainable and may not be able to sustain itself in the near future. He said:
The technologies embedded in this infrastructure open up tremendous opportunities for rebuilding the global financial system.”
Despite the volatility and bubble-like nature of the sector, Lebedev believes that the ability to come out of this stronger than ever. He singled out the ability of smart contracts and their ability to enact P2P financial arrangements, thus freeing the people from conventional banking corporations that “steal” the people’s money. His opinions are especially harsh against the sector that formerly employed him because he had seen its workings firsthand.
Lebedev also disclosed to The Independent that he was investing in the sector. He has committed more than $100,000 in an Estonia-based yield-farming protocol as an initial investment to see where the project goes. He was initially perplexed by the returns which seemed a little speculation-based. His ultimate goal is to build an independent decentralized financial ecosystem that everybody can use.
He also predicted that the digitization of physical assets will soon begin in the near future. They will include real estate, goods and services. Because of this extensive digitization efforts, trading and digital ownership will increase thus stimulating this sector even further. Overall, he believes the sector is being modernized quickly with the DeFi innovations.
Image source: flickr.com
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