DeFi Platforms Offer Cost-Effective Onboarding Compared to Traditional Banks

According to Cointelegraph, decentralized finance (DeFi) platforms present a significant cost advantage over traditional banks in onboarding new users, as highlighted by Anton Bukov, co-founder of the decentralized exchange 1inch. Speaking at the Dutch Blockchain Week in Amsterdam on May 22, Bukov emphasized that traditional banks incur costs ranging from $100 to $300 per user for document verification and account setup, while online banks spend approximately $20 to $30. In stark contrast, DeFi platforms require minimal resources beyond a smartphone and internet access, making the onboarding process virtually cost-free. Bukov noted, "Onboarding to DeFi literally costs zero. You don’t need brick-and-mortar infrastructure or lengthy verification processes. Just connect and transact." This cost efficiency positions DeFi as a viable solution for reaching the 1.4 billion unbanked individuals worldwide, who remain excluded from traditional financial systems due to high onboarding expenses. Bukov further elaborated on the potential of DeFi to integrate the unbanked into the global economy, allowing them to engage in real-life transactions using stablecoins like Tether’s USDt (USDT). He pointed out that traditional finance imposes high barriers to entry, whereas DeFi offers a more accessible alternative. As internet access continues to expand globally, DeFi is poised to reach users who have never had access to traditional banking services. Bukov illustrated this by stating, "You can just get a phone, access to the internet, and you can exchange your chicken for USDT," underscoring the ease with which DeFi facilitates participation in the global economy. In addition to promoting financial inclusion, Bukov highlighted the broader implications of DeFi in providing access to global liquidity. He described crypto as an evolving independent economic zone, where decentralized protocols facilitate the flow of hundreds of billions of dollars. "Crypto isn’t just about adopting stablecoins or building national digital currencies," Bukov remarked. "It’s a growing global liquidity hub." This dynamic liquidity environment fosters financial experimentation, yield strategies, and cross-border capital movement. Bukov also emphasized the economic opportunities available to countries that align their regulations to facilitate access to this global liquidity. "The more countries trade with each other, the more they succeed. Crypto works the same way," he concluded.