Decentralized financing protocols (DEFI) will survive the efforts of the government and businesses to impose traditional financial regulations designed to create a garden of digital systems guaranteed by Will Reeves, co-founder and CEO of Bitcoin (BTC) Rewards Company Fold.
Reeves told Cintelelegraph that regulatory proposals requiring DEFI protocols to integrate biometric identity checks into intelligent contracts, or other similar financial regulations (tradfi), will turn against, as well as efforts to control the dissemination of information on the Internet.
He also warned that inherited governments and financial institutions will use commercial incentives to conduct people on the guard authorized through traditional investment vehicles such as stock markets on the stock market (ETF), which have advantages directly on the holding of crypto directly, including use as guarantee for loans. He added:
“This is simply a chapter that will lead to an inevitable victory for these open networks. Over time, they will win, but along the way, you will see regulations and things intended to delay progress. ”
The rooted financial institutions push regulations to slow innovation while they position themselves to enter the cryptography sector during the next decade, Reeves in Cointelegraph told.
Despite this pressure, the protection of open source software developers against legal responsibility remains the highest priority to protect financial protocols without authorization against centralization and regulatory overtaking, he said.
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Financial institutions and governments enter the world of cryptography
While inherited financial institutions continue to increase their presence in cryptography and require stricter government regulations in the sector, defenders of privacy and financial sovereignty are concerned about the increase in maintenance could undermine the fundamental principles of crypto and challenge.
Protocols DEFI promise to democratize finance and banish non -banished, allowing anyone in the world a mobile phone and an internet connection does not change value and risk via an open global financial system.
Forcing the verifications of the references issued by the government or imposing other customer knowledge requirements (KYC) on protocols DEFI mine access without authorization, decentralization and increases the risks of financial monitoring, according to criticism.
These risks would also make the crypto and the indistinguishable distinction of the inherited financial system that they were supposed to replace, according to criticism of these policies.
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