Mark Cuban on why DeFi will disrupt banks: ‘Some industries are change adverse’

Mark Cuban on why DeFi will disrupt banks: ‘Some industries are change adverse’

Billionaire investor Mark Cuban is bullish on the growth of , applications, and thinks that they will pose a challenge to traditional banks. To him, the "foundational DeFi benefit is that it simplifies borrowing for personal purposes," Cuban on Thursday in response to a debate about DeFi. "It's a hassle to borrow money from a bank," he said. "And [DeFi] allows anyone with funds to be a lender as well." DeFi applications aim to , such as banks and exchanges, with cryptocurrency. Most run on the Ethereum blockchain. As Cuban mentions, through DeFi lending, users can lend out cryptocurrency, like a traditional bank does with fiat currency, and  as a lender. The barrier to entry to borrow is low compared with that of a traditional system. In most cases, the only requirement to take out a DeFi loan is the ability to provide collateral with other crypto assets. "[B]usinesses, decentralized or otherwise, tend to benefit when they offer customers the path of least resistance to get what they want and/or need," Cuban said. "DeFi is not monolithic. It's competitive. It will evolve to meet customer needs." Cuban admits DeFi won't "automatically end banking" because "banks aren't stupid," but he