The Financial Sector Conduct Authority (FSCA) predicts that South Africa’s DeFi (Decentralized Finance) market will generate R52.3 million in revenue in 2025, with over R500 million already locked in DeFi investments. However, user adoption is expected to remain low at 0.62%, according to an FSCA market study.
What is DeFi?
DeFi allows people to trade, borrow, lend, and invest using blockchain-based financial tools without relying on banks or intermediaries. Instead of centralized platforms like Binance, Luno, or VALR, DeFi uses smart contracts—automated digital agreements—to handle transactions securely and transparently.
DeFi’s Potential and Risks
The FSCA study highlights DeFi’s benefits, including:
No central authority controlling the system
Greater transparency with open-source code
Innovative financial solutions
However, it also warns of risks such as:
– Loss of funds if users forget their private keys
– Limited consumer protections in an unregulated space
– Smart contract vulnerabilities that could be exploited
Despite DeFi’s growth potential, moving crypto funds offshore is illegal
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