Mark Cuban Says Banks Should Be Scared of DeFi

Mark Cuban, the American billionaire entrepreneur, warns banks that they should be scared of decentralized finance (DeFi). Clearly, the Dallas Mavericks owner is very bullish on the future of DeFi.

On a blog post this Sunday, Cuban stated that ‘there are a lot of financial institutions that should be concerned’. He started his lengthy post saying he will make it simple and straightforward as much as he can.

Consequently, Banks are already scared as the financial regulators are busy answering the cries of banks for an outright ban on DeFi. Thus, CFTC Commissioner Dan Berkovitz called for a crackdown on DeFi platforms.

According to Cuban’s post,

Yes, every single DeFI project, is at its core, just another business. They may or may not know what business they are in, but they are just another business that happens to be using a blockchain and smart contracts to host and program their business processes.

Furthermore, he highlighted that DeFi could become a real competitor to the traditional banking industry, as reported by CNBC. Also, he mentioned the projects he put his money on, namely Polygon and Aave.

As explained by the billionaire investor, he thinks Aave is a completely automated permissionless platform. More so, there are no bankers, no buildings, no toasters, no vaults, no cash, and no credit ratings involved.

Apart from this, Mark believes that centralized technology firms operate solely for profits, which is not the same for DeFi. The capital is provided by the users, not shareholders nor the owners.

Lastly, he revealed that he provides liquidity himself to QuickSwap exchange via DAI and TITAN tokens. Of note, QuickSwap is an Ethereum-based DEX powered by Polygon’s L2 scalability infrastructure.

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Source: https://coinquora.com/mark-cuban-says-banks-should-be-scared-of-defi/