Footnote:
In: Banco de Espana Article 04 ECONOMIC BULLETIN 2023/Q3
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 27, 2023 erstellt
Description:
RationaleThis article is intended as an introduction to the world of decentralised finance (DeFi). To this end, the focus is to explain, in a simplified manner, its key characteristics and most common use cases, along with the main risks.Takeaways•DeFi is one of the latest developments in the crypto-asset space and also the segment where most ofthe recent bouts of sector turmoil have taken place. It is a complex, but still largely endogenous,ecosystem and therefore its interaction with the real economy is limited.•DeFi is actually less decentralised than it purports to be. Its real benefits are limited, while the potentialrisks are considerable. Although the risks are not substantially different from those in the traditionalfinancial sector, their drivers, speed of propagation and scale can differ entirely, compromising theauthorities’ room to manoeuvre.•Although the policy and regulatory effort is, for now, focused on traditional crypto-assets, there is agrowing debate as to what mix of measures would best contribute to mitigating the risks of DeFi. Morespecific action in this regard is expected in the years ahead