Bank of England official Carolyn Wilkins stated that DeFi is not as decentralized as claimed.
Senior adviser to the UK central bank expressed his thoughts on DeFi in a speech at University College London’s Blockchain Research Centre.
DeFi Statement from Bank of England Official
Carolyn Wilkins used the following statements, highlighting some of the flaws in the industry:
“The issues involved in crypto and DeFi governance have already contributed to issues we often faced before. Chief among these problems are failures, illegal activities and financial losses for investors.
Left unchecked, this will erode investor confidence in crypto-based financial services, leading to widespread financial stress.”
Wilkins stated that the regulatory work on the digital asset sector continues and urged the private sector and DeFi investors to do more.
“It is in the interest of the private sector to be proactive. Big investors must stand up to demand change. Adopting industry best practices is crucial to fostering a culture of trustworthiness.”
Wilkins stated that the current financial sector is starting to adopt blockchains and improving digital asset projects is becoming an emergency.
