Opinion by Katie Harries, head of policy, Europe, Coinbase
The United Kingdom is approaching a choice that could define its financial future: should decentralized finance (DeFi) be allowed to develop through regulated gateways or will it be constrained to a silo?
This is not just relevant to crypto enthusiasts; it goes to the future of capital markets, the competitiveness of the City and the UK’s ability to shape the next generation of financial infrastructure.
DeFi is software that lets people borrow, lend and trade directly with one another without relying on an intermediary like a bank or broker. It works less like a financial institution and more like the internet, promising cheaper, faster financial services that are accessible to everyone, anytime.
While DeFi will always be accessible through open-source or decentralized routes, regulated providers can also offer a route to DeFi, allowing customers to engage with the technology…