DeFi and cryptocurrencies are “like the Internet in its infancy” – CVBJ

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The bitcoin (BTC), cryptocurrency and decentralized finance (DeFi) ecosystem is “like the Internet in its infancy.” That’s what Sergej Kunz, co-founder of the 1inch decentralized stock exchange thinks. His remarks were made during a panel of the Blockchain European Convention, which was held this week virtually.

Kunz explained that when the internet started out, few expected it to be as useful and open as it is today. According to him, it will be the same with decentralized finance. The developer hopes see them grow not only as an alternative system but also within the main financial system.

The “DeFi: The Future of Finance” conversation also included Donald Thibeau, co-founder of the HBAR Foundation; Laurent Marochini, director of the financial company Société Générale; and Maximilian Bruckner, from the International Association for the Standardization of Tokens. The latter acted as moderator of the panel.

Marochini was present as an ambassador of the fiduciary system in the aforementioned debate. Societe Generale is a traditional financial company founded in 1864 with a presence in 80 countries. It is the seventh largest company in the euro area in terms of market capitalization.

The leader of the banking group is open to decentralized finance, which he does not see as competition, but as an evolution. Estimate that in 10 years the use of certain DeFi products by the traditional system will be common, for example, stable coins.

Banking sector representative calls for regulation for DeFi

According to Marochini, what DeFi lacks for its massive adoption by the financial system is more regulation. He said, for example, that on one occasion – years ago – he had a problem with his credit card due to a hack. The bank was able to solve the problem for him and cancel the illicit transactions that had taken place.

For him, it should be possible to do the same with DeFi. It should be noted that transactions with crypto-currencies are not reversible. Then the closest thing to the wishes of the executive would be a system in which participants would be identified, along with their addresses.

CriptoNoticias reported that there are already decentralized funding platforms that, to be accepted by institutional investors, have started to implement registration processes and comply with KYC policies (know your client).

Many cryptocurrency users criticize this and consider that these platforms are no longer decentralized. Bitcoin, crypto assets, and – in general – DeFi, are often associated with an ideology of financial freedom and privacy in which providing personal data to a platform is generally not desirable.

Either way, regulatory attempts on the cryptocurrency ecosystem are steadily advancing. And, like it or not, this regulated environment is what allows traditional finance to add bitcoin-related products to its wallet.

From left to right and top to bottom: Laurent Marochini, Sergej Kunz, Donald Thibeau and Maximilian Bruckner. Source: eblockchain convention.

More and more banks are turning to bitcoin

This media has reported many banks in various parts of the world adding custodial services for crypto assets, in addition to buying and selling, in order to meet customer demand.

One such financial institution is the Bank of New York Mellon, the oldest in the United States, which offers BTC custody services to its clients. Also in Europe, the French bank CACEIS is preparing to offer the safeguard of cryptographic assets to those who request it.

The clients of these entities are usually large institutional investors, who prefer to cede custody of their BTC to third parties, instead of taking on the responsibility of storing them in a self-custodial wallet.


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