Bank of England Deputy Governor Jon Cunliffe thinks that decentralized finance (DeFi) platforms are not yet able to effectively manage risk.
According to Cunliffe, DeFi platforms are very effective in risk management. if they try to eliminate intermediaries yet, it successful they couldn’t.
“As both a financial stability authority and a financial regulator, I do not think that the underlying problems of finance can be solved (with the method followed by DeFi platforms).”
instead of intermediaries trusting in code DeFi protocols to driverless vehicles By analogy, Cunliffe argues that the success of these tools that it depends on the rules, the programs that manage them, and the sensors. stressed.
Central bank vice president “How exactly are these platforms is decentralized is also unclear. Behind these protocols, there are usually companies that generate income from this business. In addition, it is often unknown who is responsible for the management of these protocols.” said.