The integration of Huma Finance and traditional finance: Challenges and Opportunities
Huma Finance's PayFi model aims for a positive interaction with the traditional financial system rather than complete replacement. We believe that the combination of Web3 and traditional finance will generate greater synergies.
On one hand, Huma Finance can provide more efficient and transparent lending infrastructure for traditional financial institutions. For example, banks can use the Huma Finance protocol to offer fast, low-cost loan services to small and medium-sized enterprises. On the other hand, the entry of traditional financial institutions will bring Huma Finance stronger capital and a broader user base. However, this path of integration is also full of challenges, such as regulatory compliance and technical compatibility, which require joint efforts from both sides to resolve.
