Anndy Lian, an early adopter of blockchain and cryptocurrency spoke at the Global DeFi Summit on 6 January 2021.
“Decentralized Finance (DeFi) will see a stronger interest from institutional investors this year. The macroeconomic trends of low-interest rate globally will also mean DeFi is more relevant to the companies. Traditional finance world keeps breaking, money and people will be redirected to Defi.” Anndy Lian shared.
What is the fastest-growing DeFi area or trend in 2021?
Defi will continue to grow rapidly in 2021.
A) Staking on Defi will grow faster than in 2020. This is closely linked to Ethereum 2.0. The launch of 2.0 is a critical step towards scaling ETH to a much larger capacity. The shift to POS allows huge amount of wealth to be staked as collateral. I would also think more users will not leave their ETH on exchanges. This then spurred to another observation.
B) I think there will be more Cefi and Defi integration in 2021. We will see integrations in traditional products. Crypto backed derivatives and cross-chain products will hit its peak by Q3 2021. We may also be seeing more crypto proprietary trading in 2021.
What challenges should we expect to arise for DeFi in 2021? Will regulators attempt to restrict or limit it in any way?
The challenges did not change. The reason why Defi grew so fast is due to the flawed financial structure. Governments will step in hard for 2021 but they are still playing a catch-up game. Based on what I know, governments know there are underlying enforcement issues. They are resorting to looking at using on-chain digital id to track and trace and enforce AML but this will again take time.
For example, DeFi lending projects will most likely be regulated in a similar way as financial institutions that offer margin lending. They will also be asked to register as a bank, a non-bank lender or a broker.
In conclusion, Anndy emphasized that we need to work closely together in this ecosystem and do the right thing for DeFi to grow.
Anndy Lian is an early blockchain adopter and experienced serial blockchain entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030” and currently the Advisory Board Member of Hyundai DAC Technology. He plays a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region. Anndy is also part of the Gyeongsangbuk-do Blockchain Special Committee, Government of Republic Korea, together with industry experts such as Brock Pierce.
This event is organised by Gulf Xellence and sponsored by YFDAI. Blockcast.cc is the PR company representing Anndy Lian.
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Name: Melody Chan