PROXI: Can #DeFi save us from financial catastrophe?
In this current global market climate where US stocks are seeing the worst fall since 1987, banks and major financial institutions are hurrying to find a solution to slow down the global market crash. The spread of the corona virus has had an unprecedented effect on the global economy. How could we have slowed this down or prevent this from happening in the first place?
Our centralized financial systems aren’t built to handle outbreaks like COV19.
Major cities like New York, London, Toronto are heading for a total lockdown and as a result stocks are plummeting at all-time lows. Major government are now forced to lower interest rates to minimize the damage, but how long can we keep doing this?
The Dow Jones closed at 12.9% down after US president Trump said the economy “may be” heading for a recession. There is a real fear that things will get worse before they get better. What happens when another situation like this comes in the future? How are we going to respond?
Government officials need to be proactive instead of reactive to prevent another stock market crash like the one in 2008.
Decentralization is the answer.
If there is one thing we can learn from the current corona virus outbreak, it’s that our current financial system needs to be tweaked to put us in control of our money and data.
What if central banks decide to print more currency to tackle a financial crisis and it backfires? DeFi puts users in control of their finances and gives you a greater yield on your investments.
The corona virus has now forced us to work from home in an effort to limit the spread of the virus. With cryptocurrencies, all financial transactions can be done online, and remotely. Maybe it’s time to move to a more decentralized financial system to protect ourselves from future damages.