Introduction
We all are used to living in the world of centralized banks and institutions that govern finance – also known as the old economy in the crypto and fintech scene. In fact, many people cannot imagine that the financial system could work differently. They simply take this existing system as the given and best option.
But is this the case? Or are there good reasons why there is a need for new paradigms like the growing new area of decentralized finance? Let’s talk about some historical milestones in the development of the financial systems of the old economy, before examining its disadvantages.
The Old Economy: History, Status Quo and Risks
Money Makes the World Go Round
Let’s start at the very beginning and go through some basic concepts. The financial story of humankind starts with the invention of money.
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