DeFi needs a new global regulator, says German central banker Joachim Wuermeling.
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- Wuermeling described decentralized finance as a “casino”.
- Calls for global regulation of DeFi
- Proposes Global Forum to set rules for DeFi
Joachim Wuermeling, Member of the Executive Board of the Deutsche Bundesbank, Germany’s central bank, called for a bank-style international standards issuer for innovations in financial technology, such as decentralized finance, DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. .
Wuermeling said it was necessary to hold discussions “now” on how to deal with the fast-growing segment of blockchain-based finance which could make banks redundant.
La medida se produce después de que se le pidiera a la organización internaciona l Financial Stability Board (FSB) to develop new rules for the cryptosector, and amid fierce debate over the proper way to regulate financial services that are not controlled by a single entity.
In fact, the FSB said in mid-May that “. is well positioned to take a leading role in designing a coherent global regulatory framework for cryptoassets.” That is to say, it is capable of taking command of this requested regulation.
Casino for technologists
Wuermeling went on to express his opinion about DeFi in a public speech today, which is not very good:
“To me, DeFi looks more like a casino for tech-savvy speculators.”
He added that DeFi “is growing rapidly and so could its links to the rest of finance and the economy…we need to discuss regulatory options now.” However, he said that “there are still too many obstacles to overcome” for the technology to become totally conventional.
“I imagine. having a global forum similar to the Basel Committee on Banking Supervision … that could establish global ground rules for digital digital technologies are these electronic tools that have the ability to generate, store or even process data. innovation.” Wuermeling said, referring to the international organization that sets rules for traditional banks.
“Digitalization knows no borders”, They do. “ That’s why we have to coordinate across national borders when designing regulation.
Rules for DeFi
On how to set the rules to the world DeFi or how to modify the rules applied to banks to bring them into this ecosystem, opinions are divided.
A recent study produced for the Observatorio Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. called for regulators to shift their focus from regulating specific institutions to activities such as lending or investments. Meanwhile, a recent report by the Bank for International Settlements, BIS, which houses the FSB and the Basel Committee, favours an approach known as integrated supervision, under which regulators have a privileged position within the DeFi code, recalls Coindesk .
El BIS has established at the end of last year, moreover, a preliminary guide on how to apply the Principles for Financial Market an area or arena, online or offline, in which commercial dealings are conducted. Infrastructures (PFMI) to stable currency currency is a medium of exchange that defines value. arrangements.
Other experts in the field DeFi, such as Joshua Ellul, director of the Centre for Distributed Ledger a record of financial transactions that cannot be changed, only appended with new transactions. Technologies at the University of Malta, have suggested a step-by-step approach, where, in the first instance, the applications DeFi They must appoint real-life trustees to meet regulatory obligations. such as auditing.
“Over time, the regulators, once they realize this is working, might even say … ‘you don’t need a meter anymore’ … and they can eliminate that requirement.” , Dijo Ellul and CoinDesk. “I don’t see it as an immediate and complete decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. regulation. I see this phasing out certain centralized a centralized organizational structure is one in which a single node or a small number of them are in control of an entire network. points.”
Sources: Coindesk , archivo
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