2nd August 2023 Digital Bytes
DeFi and privacy - balancing transparency and data protection - DeFi, which stands for decentralised finance, is growing fast and, according to Defillama, as of June 2023 it has a total locked value of $41.4 billion. DeFi offers a range of traditional financial services, such as interest-bearing accounts, loans, borrowing and prediction markets, in an alternative, decentralised way. For DeFi to garner greater institutional support it will likely be required to comply with AML/KYC checks, such checks on the face of it are an anathema to a decentralised way of doing business.
Tokenised deposits - Bank for International Settlements (BIS) published paper in April 2023, the comparing stablecoins to the unstable era of privately issued bank notes before the creation of the United States Federal Reserve. The BIS highlighted the stability of tokenised deposits, arguing that tokenised deposits as a form of payment supported the ‘singleness’ of money, making it interchangeable in all forms. Fina…
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