In a session at the Point Zero Forum, how to make DeFi safer was discussed by the leaders of JP Morgan’s Onyx blockchain division, SBI Digital Asset Holdings (SBI DAH), and custody firm Metaco, which announced a digital asset custody deal with Citi earlier today. Two of the speakers made self regulatory suggestions in addition to the inevitable regulation.
The failure of the Terra stablecoin and its associated Luna token, which together lost $44 billion in a week, was a big part of the discussion. Metaco CEO Adrien Treccani, as an entrepeneur, argued that a single failure should not lead to dismissing the technology. Failure is a normal part of innovation.
SBI’s Fernando Luis Vazquez Cao disagreed. He observed that moving fast and breaking things was perhaps acceptable for web 1 or web 2 but not in financial services, where the cost of failure is much higher. There should be no shortcuts. Referring to one of the failures of the dotcom era, he observed, “I really don’t care if something like Pets.com goes down. But if you’re building a platform with billions of dollars in AUM (assets under management), then the stakes are much higher.” He concluded that the focus should be on adequately regulating the service rather than the technology.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
