Signal DeFi dated by the report to July 2020

Summary

The report introduces decentralised finance as a digital ecosystem built on distributed ledger technology and states that it emerged in July 2020. Decentralised finance allows financial transactions to take place without traditional central intermediaries such as banks, pension funds and stockbrokers. According to the report, distributed ledgers raise efficiency and lower costs because intermediaries no longer need to take part in exchanges, and the blockchain is their most common form. The report assesses the decentralised finance market as still relatively small. At the same time it holds that cryptoassets and decentralised finance could threaten financial stability if their risks are poorly understood and proper regulation is absent.