Decentralized Finance (DeFi) and Its Impact on Traditional Banking Systems: Opportunities, Challenges, and Future Directions

48 Pages Posted: 3 Oct 2024

See all articles by Arif Ali

Arif Ali

BRAC University - BRAC Business School

Date Written: August 01, 2024

Abstract

The advent of Decentralized Finance (DeFi) represents a significant innovation in the financial industry, characterized by the use of blockchain technology and smart contracts to offer financial services without traditional intermediaries. This paper examines the growing influence of DeFi on traditional banking systems, providing a comprehensive analysis of how this emergent technology is reshaping financial intermediation. DeFi's potential to offer faster, cheaper, and more transparent financial services challenges the traditional banking paradigm, raising important questions about the future role of banks and the structure of financial markets.

Keywords: Decentralized Finance (DeFi), Traditional Banking Systems, Disintermediation, Smart Contracts, Regulatory Challenges, Consumer Protection, Financial Sustainability

Suggested Citation

Ali, Arif, Decentralized Finance (DeFi) and Its Impact on Traditional Banking Systems: Opportunities, Challenges, and Future Directions (August 01, 2024). Available at SSRN: https://ssrn.com/abstract=4942313 or http://dx.doi.org/10.2139/ssrn.4942313

Arif Ali (Contact Author)

BRAC University - BRAC Business School ( email )

Dhaka
Bangladesh

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
731
Abstract Views
3,006
Rank
75,083
PlumX Metrics