Cardano co-founder Charles Hoskinson has predicted that a Decentralized Finance (DeFi) revolution in the developing world could take place in the next three years adding 100 million users to the sector.
Hoskinson expects DeFi users to grow due to adoption in Africa
Hoskinson indicated that over the next three years, DeFi projects will see an influx of users who will conduct peer-to-peer loans, peer-to-peer payments, and peer-to-peer insurance. As a result, Cardano is planning to take the lead in the space through partnerships in Africa. He said that people in developing countries are more interested in DeFi projects, unlike New York people. Hoskinson said, that there is a lack of a substantial customer base in the West for DeFi products due to the cumbersome regulatory environment.
Interestingly in developing countries, there is a more flexible regulatory framework permitting cryptocurrency innovation. He added that in the countries there is no JPMorgan Chase or a controlling and dominating legacy financial system. Hoskinson said that DeFi will help in creating liquidity in these countries which will enable residents to accumulate and protect wealth. The Cardano co-founder said that they created it for these kinds of scenarios.
Africa holds the potential of growing DeFi
Africa is the second most populated continent in the world, and Hoskinson thinks that it holds the future for DeFi development. The optimism in Africa is based on the fact that physical capital, human capital, and economics seem to be on the right trajectory. As a result, Africa could be a promising economic environment in the next decade.
Besides Hoskinson, several other individuals believe that decentralized finance adoption will take off in Africa. In the past, there have also been assertions that the Africa Continent will be the place where cryptocurrency adoption takes off. This will equally have a ripple effect on the growth of DeFi protocols as well.
Unbanked users are likely to benefit most from DeFi development, according to Patrick Rawson. Hoskinson holds that there are successful relationships to build partnerships to grow the DeFi sector.