Bank vault with safety deposit boxesWhat is Decentralized Finance, and why is it needed? Cryptocurrency’s promise is to make money and payments accessible– to anyone, no matter where they are in the world. The Decentralized Finance (DeFi) or Open Finance movement takes that promise a step further.Decentralized Finance aims to make financial services accessible to anyone in the world with a smartphone and internet connection. The French poet and novelist Victor Hugo once said, “Nothing else in the world…not all the armies…is so powerful as an idea whose time has come.” Can this be said about cryptocurrency?It is no longer news that Binance, Coinbase, and many other crypto companies have faced strong opposition in recent times. As a result of this, they have bowed to pressure from regulatory bodies. Coinbase planned to release a lending program that was going to yield 4% annual returns on USDC deposits. Yet, in a quick turnaround, it has changed its position. The U.S based exchange has announced it would no longer be pursuing the program.“Nothing else in the world…not all the armies…is so powerful as an idea whose time has come.”–Victor HugoSince the start of Industrial-era finance, the banking system has relied on institutions. This is most pronounced in developed markets.Financial institutions, law firms, and regulatory bodies serve as the foundational “trust layer.” Such a construct was necessary to insure against systemic risk. To support this system, there are intermediaries within each aspect of financial services. We have payment service providers, third-party administrators, trade clearinghouses, brokers, etc.Canary Wharf at duskThe middlemen in the traditional finance industry are powerful. They include investment bankers, stockbrokers, and others. They are not going to fold their arms without a fight. They know what is coming. They know that cryptocurrency would cause a major disruption in the finance ecosystem.…