In the December edition of its quarterly review of the economy and finance, the Bank for International Settlements (BIS) took aim at decentralized finance, calling the ambitions of its proponents unrealistic and expressing concern over its potentially destabilizing effect on markets.
In a section titled “DeFi risks and the decentralisation illusion,” the BIS addresses the new movement, which seeks to overcome reliance on the traditional financial institutions that serve as mediators in most financial transactions.
