Can You Switch to DeFi and Go Bankless in 2023?

DeFi offers a shot at a real parallel financial system. But how easy is it to go bankless in 2023?

One of cryptocurrency’s benefits is that it lays the foundation for an entirely novel financial system. When Bitcoin launched in 2009, it offered the world’s first unmediated currency. As crypto caught on and decentralized finance (DeFi) arrived on the scene, everything changed.

DeFi allowed users to leverage blockchain technology to lend and borrow and participate in financial products like insurance and derivatives. It also opened up finance to millions of people around the world who were unbanked. Most of them are in the global south.

In theory, it opened up the world to a parallel financial system. One where you didn’t need a traditional bank to conduct most of your financial activity. So what if you wanted to travel in the opposite direction? What if you wanted to go “bankless?”

Going Bankless

The term “going bankless” refers to a philosophy that aims to curb reliance on the traditional banking system. (Often known as “TradFi” in crypto parlance.)

By going bankless, proponents say, you can take back control of your finances. Many of TradFi’s critics argue that it is too powerful. Going Bankless is a way of taking back that power and avoiding surveillance.

“Going bankless with crypto and DeFi is becoming increasingly attractive. Particularly for those who recognize many of the glaring issues offered by centralized finance and big tech,” Al Morris, CEO of Koii Labs and Chief Architect of the Koii Network, told BeInCrypto. “As the market matures and on/off ramps become more accessible, the challenges of avoiding traditional finance are gradually diminishing.”

Recent troubles in the banking sector have also given fence-sitters more reasons to make the move. The early months of this year have seen the biggest bank crisis since the 2008 financial crash. Signature Bank, Silvergate, Silicon Valley Bank, and Credit Suisse all collapsed amid the turmoil.

“Resources, guidance, and trusted partners in the industry are much easier to come by today than five years

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Author: Josh Adams

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