WEF pushes for restricting “certain types of actors and transactions” from using decentralized finance

Like the response to trucker protests in Canada demonstrated earlier in the year, a centralized and tightly controlled financial system makes it very easy to punish those participating.

On a much bigger scale, the same is true of entire countries – if they are dependent solely on centralized international systems, they can be cut off at any point, and those in control of the systems can use them as very effective weapons.

But the rise of decentralized finance (DeFi) is throwing a wrench into all this, the World Economic Forum (WEF) has noted in an article posted on its site. The WEF is calling the technology behind DeFi “something of a double-edged sword.” The case of Russia is being used as an example and perhaps a smokescreen, from which emerges the old push to regulate decentralized finances as such.

From the point of view of those developing and using DeFi, things are much more simple: the goal is to remove third parties and ensure financial sovereignty.

However, that also means the decentralized system can be used as protection against various forms of punishment – at the level of a single individual, all the way to the highest-stakes geopolitics. And the decentralized system seems to scale well across this huge playing field.

This is what the WEF is worried about: how to make sanctions designed to cripple economies of adversaries effective again, in the era of DeFi?

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Author: HP McLovincraft

Seeker of rabbit holes. Pessimist. Libertine. Contrarian. Your huckleberry. Possibly true tales of sanity-blasting horror also known as abject reality. Prepare yourself. Veteran of a thousand psychic wars. I have seen the fnords. Deplatformed on Tumblr and Twitter.

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