It’s no secret that most traditional bodies involved with Wall Street as well other competitors of crypto are trying to put up resistance by introducing barriers. These bodies also include governments of various countries that are not in favor of crypto and DeFi for obvious reasons. The major reason is that they’ll not have much control over the wealth of their citizens. Because the point of DeFi is to decentralize Finance. It will place the individual in the power of position and not an authoritative institution.
Yet, as DeFi makes its way into the mainstream, the governments are still trying to find a way to regulate them up to some extent, at least. The Bank of England, like most other traditional institutions, are beginning to discuss their role in the coming future. A future where DeFi will dominate and the individuals will be able to control their own wealth without relying on a mediator.
The situation
Regulation may not be a bad thing at all, though. Blockchain tech will ensure that no other party is involved in the decisions of the individual. However, if things are regulated, investors will have a safety net to protect them from data breaches and whatnot. The problem that the bank is facing is a shortage of data on crypto. In terms of data, crypto is quite slippery. Without data, the Bank of England cannot add worth to their discussion on crypto rules that they might enforce in the future, whenever.
