Decentralized Finance Sector (worth 261bn USD) Explored by DMCC’s Latest Crypto Report
The DMCC’s latest report has shed light on the centre’s crypto focused trade strategy. The report underlines several ways Decentralized Finance (DeFi) will have an impact on global trade in the coming years.
The DeFi sector has turned into an incredibly lucrative industry (worth over 260.9bn USD). DMCC’s crypto report goes into detail about the challenges and opportunities this growing sector will face in the coming years.
DMCC’s report scrutinizes 3 major points while discussing the potential of DeFi in the global trade sector:
- DeFi’s impact on developing and developed markets
- DeFi’s role in substituting current finance systems
- The importance of developing regulating frameworks to refine the growth of DeFi
The report has a lot of insight for businesses, investors, and DMCC auditors looking to operate and provide services in the DeFi sector. The report can be found in English, Arabic, and Mandarin.
The CEO of DMCC has stated that there’s a lot of growing interest in DeFi. The amount of wealth locked in current DeFi protocols is already huge (over 260.9bnUSD) and it’s set to grow at an exponential rate. The reason behind DeFi being so popular is that this technology has the potential to revolutionize the finance systems in the near future. It can fine tune processes and unlock benefits in global trade that are hard to be provided by regular finance systems.
The COO of DMCC has said that DeFi’s role in improving modern financing systems has already become clear. In 2021, more that 60% of large institution transactions have taken place through DeFi. This shows how the technology is already being adopted and accepted by organizations. This adoption will only help accelerate the legitimization of decentralized finance.
DMCC’s report also sheds light on how DeFi can improve financial inclusion throughout the world. Developing and developed countries can benefit vastly through the adoption of DeFI. And the best part is that existing financial systems don’t even have to worry about any disruption while adopting this technology.
DeFi is growing at a rapid pace and the report highlights the importance of developing regulations and frameworks to ensure that the technology continues to grow in the right direction. It’s important to develop frameworks while also allowing plenty of space for further innovation in this sector. Bodies from Switzerland and the UAE are already actively working on regulating DeFi.
The DMCC’s report is quite insightful and worth a read if you’re interested in learning more about DeFi and its implications. A number of other bodies have been actively analyzing this sector and sharing their findings as well. Blockchain based currencies are going to play a massive role in further adoption of DeFi in the coming future.
As of now, the DMCC’s Crypto Center already has 130 companies listed. At this rate, Dubai will soon become a global hub for crypto companies.