DeFi and TradFi: Complementary, Not Adversarial

• The co-founder and CEO of Ava Labs spoke with Cointelegraph at the World Economic Forum in Davos, Switzerland, on the future of DeFi and TradFi as two industries with merging value systems.
• Emin Gun Sirer, the co-founder and CEO of Ava Labs, stressed that the purpose of DeFi is not to attack or be an enemy to TradFi, but rather complement it, at least initially.
• He highlighted that 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 with Cointelegraph 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 argued that DeFi should complement TradFi, rather than attack it.

Sirer highlighted the importance of DeFi in providing services to people that TradFi does not, such as democratized access to financial services and platforms. He also noted that DeFi could offer more flexibility and efficiency than traditional finance, as well as the potential for better interest rates and lower transaction costs.

Sirer acknowledged that there is still a long way to go for DeFi to become mainstream, noting that the technology is still in its early stages and that the industry needs to mature in order to reach its full potential. However, he is optimistic that, as the technology matures, DeFi will be able to provide a much better experience than what TradFi currently offers.

He also emphasized the need for collaboration between the two industries, noting that both DeFi and TradFi can benefit from each other’s strengths and weaknesses. He believes that the two industries should be able to work together to create a better overall financial system, where the strengths of each are leveraged to create a more open, efficient and secure financial system.

Ultimately, Sirer believes that DeFi and TradFi should be seen as complementary, rather than adversarial, and that through collaboration, the two will be able to create a better financial system for everyone. He believes that, in the long run, DeFi will become an invaluable part of the global financial system, allowing users to access services and platforms that weren’t available before.