2026-01-12 06:28:28

Credit Card Rates Keep Soaring—But Traditional Price Caps Miss the Real Issue

Recent calls to cap credit card interest at 10% sound good in theory. Problem is, traditional interest rates above 20% exist for a reason—and capping them might just make credit harder to access, not easier.

Here's the thing: centralized lending systems built on legacy infrastructure come with costs. Underwriting, compliance, default risk—they all get baked into those double-digit rates. A hard cap doesn't solve the underlying inefficiency; it just squeezes the system.

On-chain lending offers a different path. By removing intermediaries and leveraging smart contracts, DeFi protocols can offer competitive rates to borrowers while still rewarding lenders—all without regulators needing to mandate price ceilings. The market finds its own balance.

It's not about making rates disappear. It's about building better infrastructure so fair rates become the natural outcome, not a policy mandate.

DEFI-8,93%

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PretendingSerious

· 01-12 06:56

To be honest, the traditional financial system's rigid interest rate policies can't really help the poor; instead, they make banks more cautious about lending. DeFi is the way out, as market self-regulation is much more reliable than policy intervention.

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SighingCashier

· 01-12 06:55

Here we go again, thinking that policy regulation can solve the problem? Wake up, the root cause is the inefficiency of traditional finance. DeFi is indeed a smarter path; letting the market find its own balance is always better than government mismanagement.

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LiquidatedNotStirred

· 01-12 06:51

Another old tune about "cap rates can save the world"? Wake up, the real dream is without intermediary costs. DeFi is the reliable path; letting the market regulate itself is better than policies meddling arbitrarily, right?

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AirdropAnxiety

· 01-12 06:48

It's the same old story again. Regulators want a one-size-fits-all approach but completely don't understand where the problem lies... DeFi is the way out.

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DAOdreamer

· 01-12 06:44

Is it that old cliché again, that cap rates can solve the problem? Wake up, all those costs in traditional finance have already been factored into the interest rates. Forcing them down will only drive people to the black market. I believe in the DeFi path; letting the market regulate itself is the right way, much better than government intervention.

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potentially_notable

· 01-12 06:33

This DeFi approach just sounds very Web3... but can it really be that much cheaper than traditional banks? It still seems to depend on the project's integrity.

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