1inch Labs Co-founder Anton Bukov Explains How DeFi Promises Cheaper, More Accessible Financial Services

Anton Bukov, co-founder of 1inch, has explained that operating procedures in DeFi are much cheaper than those that traditional banks use.

Decentralized finance (DeFi) operating procedures are much cheaper than those that traditional banks use, stated Anton Bukov, co-founder of 1inch, a decentralized exchange, on Wednesday.

Speaking at Dutch Blockchain Week in Amsterdam, Bukov explained that verifying documents and setting up a user at a traditional bank can cost $100-300. In comparison, online banks incur only $20-30 per user. Alternatively, using decentralized financial platforms is as easy as having a smartphone and an internet connection.

According to Bukov, Defi can be used with little or no upfront cost. Since no equipment is involved and the system doesn't require extended verification, transactions are convenient. Anyone who has the internet can use it to send and receive payments easily.

With its simplicity and low-cost structure, DeFi can serve more people than traditional banking because it can reach the 1.4 billion unbanked people.

Onboarding traditional finance is expensive, which has prevented many from accessing it. Leaving the unbanked out of financial services makes little sense as it doesn't offer better financial results, added Bukov.

No one would invest such a large amount into them, knowing that he would never see those funds again.

Unlike with traditional banks, where the barrier to entry is high, DeFi allows people with less access to finance to join the global economy.

Bukov mentioned that DeFi will enable users to handle real-life financial transactions with stablecoins like Tether (USDT). This will make things accessible that were never possible for them before.

"You can just get a phone, access to the internet, and you can exchange your chicken for USDT," he stated.

DeFi fuels global liquidity and economic growth

The 1inch co-founder also pointed out that DeFi helps provide access to liquidity on a global scale.

He believes cryptocurrency represents an independent economy, supported by billions of transactions carried out through decentralized systems.

Liquidity in the financial sector makes it possible to try new strategies, channels for obtaining returns, and international businesses.

Those countries making it easier for investors to access global liquidity are likely to take advantage of new economic changes, Bukov noted.

He suggested that more involvement in crypto can be similar to international trade, pointing out that countries generally do better as they participate more in global trade.