DeFi and Public money: Difference between pages

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imported>Doug Williamson
(Add quote - source - Bank of England - https://www.bankofengland.co.uk/speech/2021/october/jon-cunliffe-swifts-sibos-2021)
 
imported>Doug Williamson
(Create page. Sources: Linked pages.)
 
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''Cryptoassets - cryptocurrencies.''
1.  ''Economics - money supply - central banks.''


DeFi is an abbreviation for ''decentralised finance''.
The part of the money supply that is central bank liabilities.


DeFi is an alternative system to CeFi.
It includes physical money (banknotes and coins), demand deposits at the central bank and any domestic central bank digital currency.




DeFi enables the lending and borrowing of cryptoassets without using a central exchange.
2. ''Funding - public sector.''


DeFi services are algorithmic-based services that rely on smart contracts and are delivered over distributed ledger technology platforms without intermediaries.
Funding for projects or activities sourced from the public sector.


 
Contrasted with ''private money.''
:<span style="color:#4B0082">'''''DeFi's regulatory challenges'''''</span>
 
"The highly decentralised and global structure of the DeFi sector along with the difficulty to trace end users provide a unique set of challenges for regulators.
 
Even on an initial view it is clear that the sector is opaque, complex and undertakes financial activities that carry risk – activities that are regulated with the traditional financial sector.
 
 
... the degree of decentralisation currently varies across platforms.
 
However, in an extreme form, a DeFi platform could be completely decentralised with no identifiable legal entity, ownership nor even a point of human contact.
 
DeFi is still in its early infancy but its rapid growth means that regulators, domestically and internationally, need to think seriously now about the risks of a broad range of financial services being effected through DeFi platforms and how to ensure risks are managed in the DeFi world to the same standards as they are managed in traditional finance."
 
:''Is 'crypto' a financial stability risk? - Bank of England - Jon Cunliffe, Deputy Governor, Financial Stability - October 2021.''




== See also ==
== See also ==
* [[Bank of England]]
* [[Broad money]]
* [[CeFi]]
* [[Central bank]]
* [[Crypto]]
* [[Central bank digital currency]] (CBDC)
* [[Cryptoassets]]
* [[Coin]]
* [[Cryptocurrency]]
* [[Digital public money]]
* [[Distributed ledger]]
* [[Funding]]
* [[Exchange]]
* [[M0]]
* [[Financial stability]]
* [[M1]]
* [[Intermediary]]
* [[Money]]
* [[Prudential]]
* [[Money supply]]
* [[Regulation]]
* [[Private money]]
 
* [[Public ]]
 
* [[Public private partnership]]
==External link==
* [[Public sector]]
*[https://www.bankofengland.co.uk/speech/2021/october/jon-cunliffe-swifts-sibos-2021 Is 'crypto' a financial stability risk? - Bank of England - Jon Cunliffe, Deputy Governor, Financial Stability - October 2021]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Trade_finance]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Technology]]

Revision as of 08:55, 19 September 2022

1. Economics - money supply - central banks.

The part of the money supply that is central bank liabilities.

It includes physical money (banknotes and coins), demand deposits at the central bank and any domestic central bank digital currency.


2. Funding - public sector.

Funding for projects or activities sourced from the public sector.

Contrasted with private money.


See also

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