DeFi for Digital Nomads
Digital nomads may often find themselves constrained by physical borders, but when it comes to expanding this work lifestyle, decentralized finance (DeFi) may be just the solution they need.
DeFi gives people broader access to financial markets, and with its ideals of wealth accumulation, as well as cheaper finance, it embodies ‘finance for everyone’. Its use of blockchain technology means that no third parties are needed for a transaction, leading to lower costs for users.
It is clear to many that DeFi is the suture, but how quickly will we arrive at a point where using a DeFi protocol is as standard as using a traditional bank? Katya Shabanova, writing at Cointelegraph, says, “It’s quite fascinating how, in only ten years, we’ve departed with the concept of Bitcoin (BTC) as a digital currency and arrived at Wrapped BTC, farming, and all the other crypto alchemy.”
Indeed, DeFi already has a wide range of applications, including decentralized exchanges (DEX) lending and borrowing, and use of stablecoins, as well as yield farming and liquidity mining. The latter offer “a niche way to capitalize on crypto assets now gone mainstream.”
Three physical places are already well into delivering ‘blockchain-based cities’: Seoul, crypto city Nevada and Dubai. The latter seeks to migrate at least 50 percent of government transactions onto the blockchain, as announced in its Blockchain Strategy 2021, and the Emirate is one that attracts digital nomads from across the world.
Shabanova adds, with regard to the digital nomads: “In crypto, your keys means you own your money. You are your own bank. So, being responsible for your money indeed provides the freedom to spend it as you want, capitalize it as you choose, and interact on whatever platform or blockchain you desire.”
DeFi gives you the power to overcome the barriers of a national, physical border. Shabanova believes it may also be a potent tool as “the competition for qualified professionals could become more fierce in a visa-free regime, and entire cities and countries might come up with peculiar strategies to attract digital nomads.”
It is certain that DeFi and blockchain will play a significant role in this.