Central Banks Can Save DeFi, as Weird as That Sounds
The financial metaverse would be better served by truly stable currencies but the powers-that-be need to join in.
Ayn Rand’s followers dreamed of decentralized finance as the ultimate realization of their techno-anarchist utopia: freedom from both governments and large custodial organizations. But somewhere along the way, they got stuck on George Orwell’s Animal Farm where some animals are more equal than others.
Much of what passes as DeFi today is just “decentralization theater,” as Fabian Schar, a University of Basel professor of blockchain, describes it. In theory, this hot new crypto corner wasn’t envisioned to be controlled by big-bulge intermediaries. The self-executing computer code deciding how digital assets would be lent or invested was supposed to be impervious to manipulation. Developers weren’t expected to have special rights.