James Anderson Shares his Thoughts on DeFi at Unconference 2020
This past Friday evening, Rio DeFi CEO James Anderson spoke at Unconference, hosted by Unit Ventures, which was attended by over 2,000 people virtually on Zoom. James shared about the future of decentralized finance (DeFi) and then fielded questions from the audience.
James spoke about how the blockchain & cryptocurrency industry needs to better bridge the gap between novel FinTech solutions and more traditional types of financial products. He addressed how new infrastructure and simpler services are key components for DeFi products to reach mainstream adoption. Additionally, James shared how Rio DeFi is well-positioned to fill this gap.
One of the favorite questions from the audience was, “Do you think DeFi can disrupt traditional finance, and how safe is DeFi?”
Given the recent headlines over the past weeks about prominent DeFi companies getting hacked, and then having the stolen funds returned to them, it was a very appropriate question.
James responded saying “DeFi can absolutely disrupt traditional finance, however the best way to disrupt it is to work alongside the traditional players. There are certain elements of traditional finance that are still inherently better than DeFi due to DeFi being such a new field. Rio DeFi is partnering with trusted financial institutions in order to provide the traditional financial services that people have come to rely on: secure storage, audited processes, good customer service, and account recovery options. However, Rio DeFi is able to provide significantly higher interest rates and better financial incentives to people without relying on centralized entities as middlemen, which is one of the benefits of Decentralized Financial services.”
“In regard to the question about being safe, DeFi certainly has a long way to go, given that it’s such a new technology. DeFi needs more auditing of smart contracts, better collaboration with regulatory bodies and institutions to ensure proper governance processes and oversight, and insurance options both on the smart contract and on users’ deposits, similar to how the U.S. Federal Deposit Insurance Corporation (FDIC) offers insurance on bank deposits,” he added.
James’ talk was well attended, and it was exciting to see how interested people were in DeFi and the Rio DeFi project.