Decentralized finance (DeFi) could be the future of banking, a breath for financial freedom, it gives users maximum control over their assets using smart contract protocol to execute all necessary transactions without the need for intermediate bodies it's gradually making centralized finance system (CeFi) obsolete, while most users don't feel safe trading their assets under authority watch the need for decentralization is becoming a norm in finance, while DeFi is gaining popularity in the crypto space financial expert are closely watching the space and imposing new rules that make the innovative crypto space unfriendly for users.
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Tornado cash a decentralized privacy-based protocol is the first decentralized privacy mixer protocol sanctioned by US authorities Office of Foreign Assets Control (OFAC) banning US citizens from conducting transactions with the privacy blockchain address, this move by authorities shows that DeFi which is always claimed to be free from the regulatory policy can equally be subjected to centralized rules. what could become of Monera one of the leading privacy blockchains if strict rules are imposed on privacy-based protocols, investors wouldn't like to see their investment been dump because of some regulations.
DeFi will also be a threat to centralized system which also means there will always be new rules to keep DeFi under control, the best option for DeFi ecosystem is to work closely with financial authorities which is believed to be the best way out for the emerging technology to thrive in the finance space, the recent tornado cash sanction shows there is little breathing space for DeFi developers to dominate the financial market except they follow regulatory set-out rules there is little chance of survival, how decentralized will DeFi be under centralized control seems to be complicated for now, well let's see how things unfold in near future.
**What are your thoughts on this should DeFi be under centralized control?
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Bitcoin was born to separate money from governments! DeFi is far from working like bitcoin in a strict technological sense. More than 70% of cryptocurrency thefts in 2022 have been in DeFi platforms!
70% account for crypto laundry no one track how many percent are been laundered with fiat currency crypto seem to take all the blame while fiat is now seen as the good currency.
greetings @mccoy02
I particularly believe that governments are going to want to have dominion over the Defi so they can control what is already slipping out of their hands , the crypto world have many advantages and options and should governments start by closing the doors before it is too late.
Thank you very much for sharing your publication
Government always have means of control things around them and crypto under there watch is gradually becoming a threat to them hope both parties soon work thing out for good crypto has become source of income for a lot of people thanks for your time.