DeFi and Net-Zero Insurance Alliance: Difference between pages

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imported>Doug Williamson
(Add quote - sources - BGIN & OECD - https://www.oecd.org/daf/fin/financial-markets/2021-symposium-digitalisation-finance-asia.htm)
 
imported>Doug Williamson
(Add links.)
 
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''Cryptoassets - cryptocurrencies.''
''Environmental concerns - emissions - financial sector - United Nations''.


DeFi is an abbreviation for ''decentralised finance''.
(NZIA).


The Net-Zero Insurance Alliance is a global group of insurers and reinsurers committed to transition their underwriting portfolios to net-zero greenhouse gas emissions by 2050.


DeFi enables the lending and borrowing of cryptoassets without using a central exchange.


DeFi services are algorithmic-based services that rely on smart contracts and are delivered over distributed ledger technology platforms without intermediaries.
The NZIA was established in July 2021.


 
It is convened by the United Nations Environment Programme Finance Initiative's Principles for Sustainable Insurance.
DeFi is an alternative system to CeFi.  CeFi facilitates lending and borrowing crytpoassets through an exchange.
 
 
:<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.''
 
 
:<span style="color:#4B0082">'''''DeFi's channels of risk transmission'''''</span>
 
:"Although the size of the DeFi market itself is not large enough to be considered a risk to the stability of the markets, the DeFi space is still worth delving into as it is growing rapidly, attracting an increasing number of retail and institutional investors alike.
 
:Increased interest and adoption of cryptoassets by institutional investors and other traditional financial service providers in particular is leading to increased interconnections between CeFi and the parallel DeFi system and creates channels of risk transmission to the traditional markets and potentially the real economy."
 
:''OECD Symposium on Digitalisation and Finance in Asia - discussion paper - 2021.''
 
 
:<span style="color:#4B0082">'''''Improving the DeFi ecosystem - Blockchain Governance Initiative Network (BGIN)'''''</span>
 
:"Ultimately, the objective of BGIN is to take a leading role in the development of a healthy governance system for decentralised finance.
 
:The main components of such multi-stakeholder governance include common language, enhanced transparency, and multilateral stewardship, harmonisation of technology, business and law.
 
:The network’s stakeholders cultivate common understanding, enhance dialogue, and work together to make a significant positive impact on the decentralised finance ecosystem and to society more broadly.  
 
:The network aims to contribute to public policy design and implementation through such constructive communication with global standard-setters and jurisdictional regulatory, supervisory and enforcement authorities."
 
:''BGIN Terms of Reference - 2020.''




== See also ==
== See also ==
* [[Algorithm]]
* [[Adaptation Action Coalition]]
* [[Bank of England]]
* [[Adaptation communications]]
* [[Blockchain Governance Initiative Network]] (BGIN)
* [[Business Ambition for 1.5C]]
* [[CeFi]]
* [[Carbon-neutral]]
* [[Contagion]]
* [[Climate-related disclosure]]
* [[Crypto]]
* [[COP26]]
* [[Cryptoassets]]
* [[Emissions]]
* [[Cryptocurrency]]
* [[Environmental concerns]]
* [[Distributed ledger]]
* [[ESG investment]]
* [[Ecosystem]]
* [[Glasgow Financial Alliance for Net Zero]] (GFANZ)
* [[Exchange]]
* [[Green bond]]
* [[Financial intermediary]]
* [[Green Bond Principles]]
* [[Financial stability]]
* [[Greenhouse gas]]
* [[Governance]]
* [[Insurance company]]
* [[Horizon scanning]]
* [[Nationally determined contribution]]
* [[Law]]
* [[Net zero]]
* [[Organisation for Economic Co-operation and Development]]  (OECD)
* [[Net-Zero Asset Managers initiative]] (NZAM)
* [[Platform]]
* [[Net-Zero Asset Owner Alliance]] (NZAOA)
* [[Prudential]]
* [[Net-Zero Banking Alliance]] (NZBA)
* [[Real economy]]
* [[Paris Agreement]]
* [[Regulation]]
* [[Paris Aligned Investment Initiative]] (PAII)
* [[Retail]]
* [[Pension fund]]
* [[Risk evaluation]]
* [[Principles for Responsible Investment]]  (PRI)
* [[Risk transmission]]
* [[Principles for Sustainable Insurance]] (PSI)
* [[Smart contract]]
* [[Race To Zero]]
* [[Stewardship]]
* [[Resilience]]
* [[Supervision]]
* [[Road to Zero]]
* [[Systemic risk]]
* [[Transition]]
* [[Underwriting]]
* [[United Nations]]
* [[United Nations Environment Programme]]
* [[United Nations Environment Programme Finance Initiative]]
* [[United Nations Framework Convention on Climate Change]]
* [[Zero emissions]]




==External link==
==External link==
*[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]
*[https://www.unepfi.org/net-zero-insurance/ About the NZIA]


[[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:Compliance_and_audit]]
[[Category:Ethics]]
[[Category:Identify_and_assess_risks]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
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[[Category:Risk_reporting]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]
[[Category:Technology]]

Revision as of 13:09, 1 November 2021

Environmental concerns - emissions - financial sector - United Nations.

(NZIA).

The Net-Zero Insurance Alliance is a global group of insurers and reinsurers committed to transition their underwriting portfolios to net-zero greenhouse gas emissions by 2050.


The NZIA was established in July 2021.

It is convened by the United Nations Environment Programme Finance Initiative's Principles for Sustainable Insurance.


See also


External link