International Business and Decentralized Finance

Abstract

Over the last decade, the green shoots of a new economic order have appeared as decentralized technologies emerge to challenge traditional financial systems. Decentralized finance (DeFi) offers transparency, interoperability, security, low costs, and equal accessibility---all lacking in the current financial model. DeFi is a growing force in fintech, but it has risks, including smart-contract vulnerabilities, fragile governance, custodial issues, and regulatory uncertainties. Despite its inherent risks as an emerging and fast-evolving technology, DeFi possesses the potential to establish a new frontier in international business.

Keywords: International business, DeFi, fintech, smart contracts, blockchain, financial innovation, regulation

JEL Classification: G15, G18, G29, K29, K42, O16