VIII. Lack of Interoperability

Traditional financial systems and decentralized finance (DeFi) platforms currently function in largely independent ecosystems, with very few efficient connections linking the two. This separation makes it challenging for users to easily move between fiat currencies and crypto assets, creating a disjointed experience when trying to use both in everyday financial transactions.

For example, individuals looking to convert their earnings in cryptocurrencies into fiat for routine expenses or, conversely, trying to invest fiat into DeFi protocols, often encounter cumbersome processes, high fees, and long wait times.

Users are forced to rely on third-party intermediaries, such as centralized exchanges, to bridge the gap between these two financial worlds. This not only adds complexity but also increases costs and undermines the decentralized nature of DeFi. The absence of smooth, instant conversions between fiat and crypto hinders DeFi’s potential to serve as a mainstream financial alternative, limiting its accessibility for the average user.