Charles Hoskinson, Cardano Founder, has predicted that the DeFi revolution will begin in the developing world. He also added that the 100 million market potential of the developing world would be needed if the Decentralized Finance (DeFi) sector will realize its potential.
Hoskinson added that developing countries will offer a huge growth base to the DeFi sector in the next three years.
According to him, people are more interested in peer-to-peer insurance and payments, as well as loans in Africa, and not from the highly expected places like New York or London.
DeFi hindered by high regulatory policies in the west
There is no chance of the DeFi project gaining popularity in the west because of the extremely stringent regulatory policies. With DeFi, a more flexible regulatory framework is ideal for its growth, and the regulatory environment in Africa and other developing countries provide this framework.
DeFi will facilitate improved liquidity for users in developing countries. And it will foster wealth accumulation. “We created Cardano for this purpose,” Hoskinson added.
Cardano plans partnership in Africa
With this expectation from developing countries, Hoskinson says Cardano is planning series of partnerships in Africa to tap into the huge potential from the continent.
He said Cardano is all set to take the first initiation of launching DeFi projects in the African continent.
DeFi products don’t have a significant customer base, and it may take many years for the protocol to gain ground in the west because of the unfavorable regulatory environment. But contrary to the environment in the west, African countries provide a more flexible regulatory environment.
Cardano wants to gain a significant DeFi market in Africa
Over there, no big organization can be said to be domineering or over-controlling in the market. That makes DeFi projects in Africa more likely to grow and succeed in the continent than other regions, he reiterated.
DeFi is not like any other project that is geared towards those with more money to invest. For DeFi, even the poorest people in the world can build wealth and protect their wealth with the help of the protocol.
According to Hoskinson, the idea for Cardano is to help the continent and gain a significant market share in the region in this early phase of DeFi’s growth.