Powell: A “real need” for more appropriate DeFi regulation!

Researchers from two of the biggest crypto companies just made an interesting post. Indeed, according to Circle and Unisap Research, it would be possible to circumvent the exchange risk that weighs on investors with each transaction. Research points to 2 billion exchanges being at risk each year. The researchers are therefore certain that DeFi, like blockchain technology, are effective solutions for lowering the costs of international transfers, the value of which is around 30 billion dollars each year.

Uniswap Research and Circle offer DeFi as a solution to international exchange rates

Circle and Uniswap Research want to solve the exchange problem via DeFi

Cryptocurrencies in general have come to revolutionize money transfer and investment habits. But, all is not yet perfect, since almost $2.2 trillion transactions are risky. The risk concerns much more the part of the transaction for which settlement is not yet effective. It is entirely possible that the party which has not yet respected its commitment decides not to honor its part of the contract. In order to stop this kind of maneuvers, Circle and Uniswap Research have just published an article in which they specify that DeFi is the appropriate solution, because it will make it possible to achieve a simultaneous settlement.

In the panel of researchers, we had big names in the industry like Mary Catherine Laderthe CEO of Uniswap, and Gordon Liao, Boss of Circle. According to them, DeFi, along with innovations in the crypto industry, is an important solution to bring financial stability to regulators.

DeFi would be a major focus for providing some stability to regulatory bodies. This is the main idea that emerges from 20 page document produced by the two companies and which will be published today at the World Economic Forum. By way of conclusion, the document reads: On-chain FX can offer faster and more affordable transaction processes, as well as greater liquidity and stability”,

In the process, the researchers also point out that DeFi can reduce international transfer costs by up to 80%. That’s pretty important data, especially when you consider that crypto is so successful because of sending money quickly and inexpensively.

Conclusion

DeFi is, according to Circle and Uniswap Research, the miracle solution to reduce the cost of international transactions. The two cryptocurrency specialists have just released a document in which they propose the blockchain as solutions to save money. With cryptocurrency, it would be possible to save 30 billion dollars each year. This document comes at the perfect time, as several crypto companies are struggling to convince because of their questionable reputation. The FTX exchange is arguably the best illustration. The presentation of the 20-page book will take place this Thursday at the World Economic Forum.

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