People working in finance or interested in decentralised investments can get trusted and verified information in Luxembourg about DeFi, when DeFinity Club launches in September.
Founded by four people, the not-for-profit aims to boost DeFi adoption in Luxembourg, by filling in the knowledge gaps.
DeFi is a collective term for emerging internet-native financial systems that use blockchain to replace traditional intermediaries and trust mechanisms. The industry has grown considerably thanks to DeFi technology’s ability to eliminate the fees charged by banks and other operators, create digital wallets, speed up transactions and democratise access to financial platforms.
“DeFi is a game changer,” says Philippe Genicot, one of the founding members who has some 25 years’ experience in finance. He says, however, that few people besides AI and computer science experts know about it.
“DeFi is still in its infancy. So it’s the period where the best opportunities can be seized,” says Laurent Kinet, a serial entrepreneur based in Belgium and another co-founder. He adds: “When I say opportunities. I’m talking about profits but not only. With decentralised finance, you can do anything that you do in traditional finance: investing, lending, borrowing, payments, but in a decentralised way.”
“The biggest challenge is the regulatory aspects and the fact that it is still managed country by country,”Laurent Kinet, co-founder of the not-for-profit DeFinity Club
The DeFinity Club aims to raise awareness about DeFi and support members with their investments in decentralised finance. Its two senior technical experts will provide technical support, analysis and explain the different protocols, which are used to attract early investors in DeFi products.
“DeFi protocols and interfaces are all but user friendly,” says Genicot, adding: “We are fortunate to have these two experts who can analyse the protocols. They can look into the coding on blockchain and that’s why they can recommend one protocol over another.”
The club meanwhile works with a lawyer specialised in finance and cryptocurrencies, who can offer members support on legal aspects.
A number of initiatives have mushroomed in Luxembourg around cryptocurrencies and blockchain. DeFinity Club differentiates itself in its scope, focusing purely on DeFi.
In the next five years, DeFi is expected to undergo mass adoption, as it becomes integrated into traditional financial applications.
“The biggest challenge is the regulatory aspects and the fact that it is still managed country by country,” says Kinet “DeFi will never reach a mass adoption situation if this security aspect is not managed, because it’s still very insecure in terms of cybersecurity and theft.”
Other factors slowing down adoption include the fiscal gray area around blockchain and DeFi. He believes that the key to finding a solution will be working as a community.