Fed’s Waller Says ‘Defi’ Can Complement Centralized Finance

Federal Reserve Governor Christopher Waller says aspects of decentralized finance — including technologies that support virtual currencies — can complement the traditional financial system.

• “Advances associated with DeFi have the potential to profoundly affect financial market trading,” Waller says in a speech to the Institute of Advanced Studies’ Vienna Macroeconomics Workshop
• “It is easy to see how the emergence of these technologies could lead one to think of DeFi as a substitute for centralized finance”
• “However, there are other uses emerging from these technologies that look more like complements to centralized finance,” Waller says, pointing to distributed ledger technology, which ...