Is it traditional finance if it is a backing loan for dollar-pegged assets that can be held by anyone in the developed world (ie. rather than rely on your rapidly decreasing Naira - buy some Dai from a local dealer and you have a stable store of value backed by a global basket of assets)? And if the entities granting the loans are anonymous decentralized collectives?

I agree that the overcollateralized loans backed by crypto are less useful unless you want to be investing crypto, which is what I mentioned at the beginning of my comment. I am not the commentator who said the thing about anywhere in the world without approval.

A loan agreement that is enforced by courts of justice is traditional finance certainly.

Loans in decentralised finance use smart contracts, instead of relying on the legal system.

> Loans in decentralised finance use smart contracts, instead of relying on the legal system.

Code over law.

And what I was pointing out is that there is a use-case for crypto. DeFi.