The financial system that the world has been using for several decades now has aged. Suddenly the bloom of cryptocurrency, and decentralized finance has made the old system even look ugly.
Here are more than a dozen major problems that they have right now.
- It is slow and inefficient
- There is no transaction level transparency like those on blockchain.
- These systems are too centralized
- They charge high fees and interest rates to customer.
- They pay a very miniscule yield to the end user.
- These financial systems are unavailable to many (unbanked)
- There are lots of middlemen or intermediaries involved, each staking a slice of pie, making your transactions complex, slow and costly.
- You don’t own your own money. Yes, you can deposit and withdraw it, but there are limitations.
- These systems are not censorship proof.
- They impose limitations on transfers, deposits, withdrawals.
- They have inflation problems.
- They can be impacted by debt collapses and debt defaults.
Do you think of any more points? Leave them on the comment section below.