​​#BIS: 'complete decentralization of #DeFi is an illusion' # | Dex 💎GEM💎 DeFi

​​#BIS: "complete decentralization of #DeFi is an illusion"

#Bank for International Settlements #BIS has identified #DeFi as a potential threat to the financial system and urged governments to develop legislation to regulate the sector as soon as possible.

The #BIS report states that "complete decentralization of #DeFi is an illusion."

Governance tokens that give voting power in decentralized systems shatter this illusion. Holders of such tokens can influence the DeFi project by voting on proposals or changes in the governance system.

At the same time, governing bodies, decentralized autonomous organizations #DAO - can control several #DeFi projects

“This element of centralization can serve as the basis for the recognition of #DeFi platforms by corporate-like entities. For example, DAOs can register as limited liability companies, as in the state of Wyoming, ”the report says.

#BIS claims #DeFi needs centralized management. The report notes that "DeFi's inherent governance structures are natural starting points for public policy."

Given the rapid growth of the sector, #BIS recommends that governments develop legislation to regulate the sector as soon as possible.