Powell, Lagarde Urge More Regulation for DeFi and Stablecoins

Christine Lagarde of the ECB, the Federal Reserve’s Jerome Powell, and BIS general manager Agustin Carstens attended an online panel hosted by the Bank of France on Tuesday to share their thoughts on the decentralized finance (DeFi) sector, agreeing that a broader regulation is warranted. According to Bank for International Settlements (BIS) general manager Carstens, one of the big problems is that DeFi, in its current form, is it’s basically about “self-referencing” transactions that are not tied to real-life transactions.According to Carstens, what DeFi applications are basically relying on is collateralized arrangements, and that’s why stablecoins are “the grease in the wheels in DeFi.