Bitcoin-based DeFi in El Salvador

Yesterday saw the announcement of an interesting collaboration in El Salvador between a national bank (Banco Hipotecario) and Sovryn, an open-source Bitcoin-based DeFi platform. Sovryn allows people to utilize their Bitcoin for such things as lending, facilitating decentralized trading and so on.

I think it's incredibly massive news for Bitcoin (as well as for the people in El Salvador). Using DeFi services is quite another step to take for the average person, and the bank effectively helps people getting used to the idea that it is safe and secure. It further entrenches the embrace of Bitcoin, undermining any argument for the need to widen adoption to include other cryptocurrencies. No SOV is needed to use Bitcoin on the platform. Sovryn aims to offer the full DeFi suit (including NFTs, stablecoins, mortgages, etc.), all based on the usage and security of Bitcoin. A national bank will effectively teach people to use their Bitcoin (and softens onboarding), using a decentralized platform that is just as available without any bank. These seem to me the realistic steps to the eventual demise of the centralized banking world and a Bitcoin-based financial system.

The vision of the future that starts to emerge from the adoption in El Salvador is that of a system consisting of Bitcoin + Lightning + RSK + Bitcoin-based DeFi. Little else seems needed.

https://www.coindesk.com/business/2021/10/07/el-salvadors-state-owned-banco-hipotecario-taps-four-crypto-startups-for-blockchain-solutions/

https://www.sovryn.app/blog/tech-innovators-lead-the-charge-to-ensure-bitcoin-adoption-in-el-salvador-is-a-success