DeFi

Senior Official In US Treasury Envisions Massive Growth For DeFi Sector

The DeFi sector is gaining some exposure and attention from top players globally. The technology which helps with timely and efficient financial transactions is getting noticed. Years ago, people predicted that the decentralized financial system innovation would not see the light of the day as they doubted its feasibility.

Today, many institutions infuse DeFi into their system to allow customers and clients to transact without the fear of data leaks from hacking or facing unwanted restrictions. Like Bitcoin, 2020 was the year for DeFi because it got numerous investments sealed in its protocols, unlike in 2019. Around late 2020 to early 2021, money locked in DeFi protocols was worth $23.3 billion, but in 2019, the innovation saw only $1 billion worth of investments showing an incredible increase.

Brian Brooks speaks on DeFi technology

The decentralized finance sector created some platforms to promote the use of its tech. Amongst the developed platforms, Aave and Yearn stand as the most popular ones in the space. Yearn allows participants to earn tokens by playing different games in which the tokens are made to real money. The new additions drove numerous investors into the space to help the industry grow.

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When asked in an interview what he thought about DeFi’s growth in the space, Brian Brooks said that he believes that growth in the industry is far from over because he sees a great future for the blockchain-based technology. Financial Times first released the article yesterday with the US treasury official, asking questions concerning his opinion of the sector.

The senior official, who is also the comptroller of the currency, explained that the technology plays a significant role in the banking sector. His position as the comptroller means that he acts as a watchdog for US banks, which means that he is not new to the space. Brooks opined that the technology would face global adoption due to its automation and efficiency.

Brooks lists advantages of DeFi

The official is interested in the tech as he listed some advantages that will quicken the mainstream adoption of DeFi. Brooks mentioned that the decentralized nature eradicates intermediaries by being automated, thereby encouraging its usage. He called the automated nature of DeFi banks ‘self-driving’ and foresees a larger market in the future. Despite Brooks’ optimistic outlook on the sector, he showed worries concerning the platform’s lack of regulations, mainly because investors are vulnerable to high investment risks.

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On matters concerning the platform, NBA team co-owner, Mark Cuban, spoke on the industry. The owner who recently shared on his Twitter handle his team’s support for Bitcoin by allowing interested holders to buy merchandise on the platform with the crypto. He criticized how expensive moving crypto to the AAVE platform.

The platform gives out loans, but high traffic on it shows the scalability problems Ethereum-based faces and how high fees cost. Unfortunately, the billionaire might not make any investment moves on the sector, at least for now, but once the gas fee reduces, the industry could receive more attention.

Adebayo Owotunse (Nigeria)

Adebayo Owotunse is a versatile writer who has written hundreds of crypto articles for dozens of agencies across the years. He is now also the newest addition to the Tokenhell writers team.

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