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Decentralized finance (literacy) today and in 2034: Initial insights from Singapore and beyond

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  • Liebau, Daniel

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. Financial institutions should prioritize DeFi Literacy. DeFi represents emerging market entry requiring organizational transformation, not just technological implementation. Recent SEC developments are broadly consistent with expert expectations.

Suggested Citation

  • Liebau, Daniel, 2025. "Decentralized finance (literacy) today and in 2034: Initial insights from Singapore and beyond," Emerging Markets Review, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:ememar:v:69:y:2025:i:c:s156601412500127x
    DOI: 10.1016/j.ememar.2025.101378
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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