RE: What Cryptocurrencies Represent? - A Ticket to a New Kind of Economy
Good morning @culgin
I kept returning to this topic is because I see DeFi as something that is going to radically change the existing financial system
Now question I have - how can regulatory framework affect DeFi? DeFi seem to be "an enemy" to existing financial system and that may not be easy battle.
The bank will scrutinize your credit score, employment history and some other personal details before accepting you as a client.
All those steps are the reasons why majority of people have some trust towards banks. DeFi may be the future, but we need to wait at least till new generation of users. Current bank customers will probably not be interested with this overcomplicated technology and DeFi will most likely enjoy popularity only between early-adopters. That's just how I see it at the moment.
Another interesting read. Upvote on the way :)
Yours, Piotr
The question will be, how can regulators enforce their rules on a decentralized network? 😉
Even decentralized network will have some centralized parts.
Just like Steem: as a blockchain it's decentralized, but you can go after all front-ends that are large enough to attract attention.
Anyway, that's a solid question.
Cheers, Piotr
That's true. But when something is big enough and when the stake is high enough, there will be plenty of people willing to provide these "centralized" components
Furthermore, regulators are often slow to the game. By the time DeFi is big enough to attract their attention, they probably cant do much about it anymore