This statement is written by Open-ai.
It sounds reasonable but I couldn’t find the decent fact to counter that.
What do you think?
“Decentralization of finance may seem like an innovative concept, but in reality, it poses a significant threat to the stability and security of our financial systems, as it enables unregulated and anonymous transactions that could facilitate illegal activities and disrupt the economy.”
9 thoughts on “True or false?”
What’s the logical step between “illegal activities” and “destabilize the economy”?
I’d argue against the use of the terms “unregulated” and “anonymous”, because for the first in human history, DeFi means that we have financial systems regulated by verifiable smart contracts, and using cryptographic identities that are computationally intractable to forge. Never have regulations and identities been more solid than in DeFi.
The regulations and identities might not map one to one with the existing legacy legal/financial infrastructure, but the legacy system is an unsustainable garbage fire. It will adapt to the new crypto economy, or it will perish.
Let’s pick it apart:
This statement begins with a logical fallacy:
“Defi may seem innovative, but it’s actually a threat.”
Being a threat does not make it non-innovative. In fact, the very nature of it’s innovation is why it *is* a threat.
And yes, it does pose a threat to the current institutions, because it offers an alternative in which they are no longer necessary.
As for the illicit activity: Here is an analysis by chainalysis: https://blog.chainalysis.com/reports/2022-crypto-crime-report-introduction/
And you can find a decent article on the conparision between fiat and crypto amounts used in illegal activity, here: https://regtechconsulting.net/crypto-blockchain/crypto-vs-fiat-is-one-or-the-other-more-of-a-haven-for-illicit-financing/
😂 Funny how it only lists the few *potential downsides and completely ignored the upsides, which are far more. Also fiat is used wayyyy more illegally than crypto. Crypto id day is even worse for hiding money or doing illegal shit because it’s on an open ledger
I think you’re making the classic Reddit mistake of asking a question in an environment where it’s socially required to answer in one way.
No wonder, we live in a world where everything can happen
people actually will believe this and won’t have the first thing in their mind be that transactions can happen anonymously in tradfi with cash or business fronts
Goodluck tracking all that drug cash and laundered notes.