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arXiv · 2410.14173

Decentralized Finance (Literacy) today and in 2034: Initial Insights from Singapore and beyond

Daniel Liebau
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Abstract

How will Decentralized Finance transform financial services? Using New Institutional Economics and Dynamic Capabilities Theory, I analyse survey data from 109 experts using non-parametric methods. Experts span traditional finance, DeFi industry, and academia. Four insights emerge: adoption expectations rise from negligible to 43% expecting at least high adoption by 2034; experts expect convergence scenarios over disruption, with traditional finance embracing DeFi most likely; back-office transforms before customer-facing functions; strategic competencies eclipse DeFi-sector specific- and technical skills. This challenges technology-centric adoption models. DeFi represents emerging market entry requiring organizational transformation, not just technological implementation. SEC developments validate predictions. Financial institutions should prioritize developing strategic capabilities over mere technical training.

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Daniel Liebau. 2024-10-18. Decentralized Finance (Literacy) today and in 2034: Initial Insights from Singapore and beyond. https://arxiv.org/abs/2410.14173

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