Cao Yin: An economic crisis or an important opportunity for the rise of DeFi under the epidemic

On April 5, Cao Yinfa, managing director of the Digital Renaissance Foundation, said that the economic crisis or an important opportunity for the rise of DeFi under the epidemic. Cao Yin predicts that the epidemic may lead to economic and financial crisis consequences, saying that the demand for dollars has surged and investors have sold assets for dollars; pressure on the devaluation of local currencies, countries have adopted strict capital controls; economic depression, major economies will maintain low or even zero interest rates for a long time; society Risk appetite has dropped sharply, saving has become an important way of life; economic + financial crisis, banks in developing countries are on the verge of bankruptcy. This series of crises may be triggered by the influx of safe-haven US dollars into centralized stable currencies, and potential financial management needs to trigger DeFi lending.

Cao Yin pointed out that DeFi payments and transactions will become a green channel for capital-controlled countries. At the same time, a large amount of zero-interest-rate funds will be converted into stablecoins to enter DeFi for spread arbitrage; users will find that DeFi savings are safer, more profitable, and more flexible than banks; in addition, there are stablecoin deposits and withdrawals, stablecoin wealth management, and stablecoin payments And development opportunities such as collection and liquidity tools for fixed income assets.