DeFi's zero onboarding costs allow it to reach 1.4B unbanked: 1inch co-founder
Decentralized finance (DeFi) platforms have a significant cost advantage over traditional banks for user onboarding. Traditional banks spend $100 to $300 per user, while online banks spend $20 to $30. DeFi requires only a smartphone and internet access, making onboarding effectively free. This accessibility positions DeFi to reach the 1.4 billion unbanked individuals excluded from traditional finance due to high costs. DeFi lowers barriers to entry, enabling participation in the global economy through stablecoins like Tether’s USDt (USDT). Additionally, DeFi provides access to global liquidity, facilitating financial experimentation and cross-border capital movement. Countries that adapt regulations to support this liquidity can unlock economic opportunities and enhance international trade.
