1inch Co-Founder: DeFi’s Zero Onboarding Costs Unlock Financial Inclusion for 1.4 Billion
Anton Bukov, co-founder of the decentralized exchange 1inch, recently highlighted the transformative potential of decentralized finance (DeFi) in bridging the financial inclusion gap. Speaking at Dutch Blockchain Week, Bukov emphasized the stark contrast between DeFi’s near-zero onboarding costs and the substantial expenses incurred by traditional banks.
Traditional banks, Bukov explained, spend between $100 and $300 per user for verification and account setup. Even online banks average $20-$30 per user. In sharp contrast, DeFi requires minimal investment; only a smartphone and internet access are necessary. “Onboarding to DeFi literally costs zero,” Bukov stated. “No brick-and-mortar infrastructure or lengthy verification is required; just connect and transact.”
This dramatic cost difference positions DeFi uniquely to address the financial exclusion affecting 1.4 billion unbanked individuals globally. The high onboarding costs of traditional banking systems render them inaccessible to this vast population, preventing their participation in the global economy.
1inch Network co-founder Anton Bukov at the Dutch Blockchain Week. Source: Cointelegraph
Empowering the Unbanked Through DeFi
Bukov stressed that DeFi’s low barrier to entry allows the unbanked to participate in the global economy, utilizing stablecoins like USDT for real-world transactions. As internet access expands worldwide, DeFi’s reach will only continue to grow, empowering individuals previously excluded from traditional finance. “You can get a phone, access the internet, and exchange your chicken for USDT,” Bukov illustrated, highlighting DeFi’s simplicity and global reach.
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Beyond Inclusion: Access to Global Liquidity
Beyond financial inclusion, Bukov underscored the importance of DeFi’s access to global liquidity. He views crypto as an evolving independent economic zone, facilitating the flow of hundreds of billions through decentralized protocols. “Crypto isn’t just about stablecoins or national digital currencies; it’s a growing global liquidity hub,” he explained. This dynamic liquidity fosters financial experimentation, diverse yield strategies, and seamless cross-border capital movement.
Bukov concluded by suggesting that nations that adapt their regulations to support easier access to this global liquidity can unlock significant economic benefits and cooperation. “The more countries trade, the more they succeed. Crypto works the same way.”
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