- Decentralized Finance (DeFi), a category of financial services that doesn't rely on central institutions, aims to transform traditional forms of finance by reconstructing and reimagining services.
- Interest in DeFi rose sharply during the pandemic, and governments are closely watching cryptocurrencies and decentralized applications.
- Watch the issue briefing to learn what are the ways in which we could accelerate the benefits and mitigate the risks of DeFi.
Have you read?
Over $58 billion USD is now locked in blockchain-based decentralized finance (DeFi) – and governments around the world are starting to pay attention. Join this issue briefing to hear from experts on the future of decentralized finance and the global policy outlook for this quickly evolving space.
Robert Leshner, Founder and CEO, Compound Labs
Paul Maley, Managing Director, Deutsche Bank
Miller Whitehouse-Levine, Policy Director, DeFi Education Fund
Jehudi Castro-Sierra, Digital Transformation Advisor, Presidency of Colombia
Sheila Warren, Head of Blockchain & Digital Assets, World Economic Forum
Deirdre Bosa, “TechCheck” Co-Anchor, CNBC
Have you read?
On the opportunities of DeFi
DeFi is like the early Internet: its success was a result of not constricting how it gets used and where it gets used. It was a global technology, and it’s one that was completely unexpected and disruptive. Its success came from allowing it to flourish without prematurely adding rules for how and where and why it should be used.—Robert Leshner, Founder and CEO, Compound Labs
We as a human society should be thinking about access to financial services and basic financial services which are pretty much a prerequisite to wealth creation. The Internet provides a very efficient way to bring people into the financial system and an Internet native financial system like decentralized finance could be a great solution.—Miller Whitehouse-Levine, Policy Director, DeFi Education Fund
On when to regulate:
Regulators are going to have to look at this from a different angle when they think about what types of regulation should exist. It's not going to look like the same problems that exist in the current financial markets, it's going to look like entirely new problems.—Robert Leshner, Founder and CEO, Compound Labs
When the technology is as new as AI, crypto, and DeFi, it’s not a good idea to regulate straightaway. Most of the regulation for the traditional financial system depends on central institutions as a touch point. We shouldn't make it fit. We first need ways to learn, as governments and innovators, and to allow innovation.—Jehudi Castro-Sierra, Digital Transformation Advisor, Presidency of Colombia
On traditional banking and DeFi
It's necessary for any bank that wants to compete in the future, to make sure they have an ability to interact and interoperate with DeFi systems as they emerge.
This is actually going to happen, but the question everyone has been asking is how and in what order. We don't know the answer to those.—Paul Maley, Managing Director, Deutsche Bank