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First Physical Bank Adopts DeFi Protocols

The SEBA BANK which is found in Switzerland is the first ever physical bank to adopt defi protocols into their systems. In this article I'm going to break down exactly what protocols those are and what it could pave way for the future.

In a world of war, crazy high inflation and governments around the world becoming more and more oppressive over it's citizens people are fighting back and they are doing so in a way which is hitting them where it hurts and that's through cryptocurrency. Because of this governments are now doing everything they can to regulate cryptocurrency, track it and overall get their cut which is many cases is higher than normal taxes!

That's pretty much the price you pay when you yell and scream constantly as some of the crypto community has done that that want big investors in the game which are "Institutional Money" They are now wanting and demanding to be a part of DeFi, NFTs and the likes but some of their hands are tied to some degree. Thus a heavy push is now on regulations and tracking and it's only right now taking shape.

This bank is now working with regulators in their area to launch their first ever DeFi protocol themselves. It will be locked in with AML(Anti-Money Laundering), KYC(Know your customer) along with KYB (Know your business). These systems are in place to build "trust" in that no rug pull etc can happen and the funds in there are relatively safe or backed by something if something should happen. Much like if you get a FDIC insured bank account. If anything happens you're suppose to be safe and backed by the government for a certain amount of funds.

These checks and systems will make it so that few can actully take part in it and they will be fully verified and tracked. I guess if you have that much money though do you really care? In any case this will most likely mean a flood of new funds injected into the system and so far those systems look like they will be Polkadot, Tezos and Cardano and perhaps lending of Bitcoin and Ethereum. It will also see itself working within Staking of these coins.

What are your thoughts on a bank getting involved in DeFi?

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l337m45732 4 years ago

Interesting idea but I think that removes the decentralized part. This seems to be regular finance flavored with seasoning from DeFi.

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poshtoken 4 years ago

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jfang003 4 years ago

Banks getting involved with Defi sounds good but I don't think getting the government involved in the process doesn't sound like a good idea. I wonder if they will try to shut down any Defi platform beside the government-approved ones.