The Future of Finance in the Era Of Shadow Banking and Decentralized Exchanges

DeFi is a peer-to-peer (P2P) financial system without the control of a centralized organization, e.g., banks. Shadow banking refers to financial organizations that aren't primarily connected to commercial banks but offer similar services. The DeFi sector, which stood at $700 million in 2019, is now worth about $140 billion. Traditional financial systems haven't changed much over the last 100 years - regardless of the digitization. The savings culture with traditional finance globally is almost non-existent, and borrowing rates are as high as ever despite the teeming interest rates.