The World Economic Forum (WEF) has released a new digital financial services policy toolkit that’s designed to help countries and regions create robust digital financial services infrastructures, and the WEF is encouraging its member countries to use these policies as a guide in their own development.
The World Economic Forum last week issued a new report (pdf) that will be used as the basis for a blockchain policy platform known as DeFi (DeFi Technologies: Policy and Legal Framework). The report is based on a consultative process held in 2017 among a group of experts in the financial community, including professors, university researchers, financial regulators, lawyers, investment managers, and other experts. The report was put together by a WEF taskforce tasked with reviewing the existing global blockchain policy landscape.
In a move that will help kickstart the growth of decentralized finance (DeFi), the World Economic Forum (WEF) has issued a “Principles for Distributed Ledger Technologies” policy paper. Called “Consensus 20/20: A Framework for Global Collaboration for the Future of Finance”, the paper is an effort to create a unified framework that can be used by all stakeholders in the industry.According to a statement released this morning, the World Economic Forum (WEF), a global policy, business and academic think tank, today released its Decentralized Finance Toolkit (DeFi). DeFi means financial empowerment (and always the associated risk) for multiple generations. The most important first step before any regulatory or policy action is to assess the changing landscape, said Michael Mosier, acting director of the Financial Crimes Enforcement Network (FinCEN) in the United States. The toolkit was created in collaboration with the Blockchain and Digital Asset Project at the Wharton School of the University of Pennsylvania. It provides policymakers and regulators with guidance on technologies that are evolving globally and rapidly. Decentralised funding can have a significant impact on financial services. A new approach to policy and regulation is therefore essential. The new Toolkit for Policy Developers from @wef and @Wharton will help you. Read more about #blockchain, digital assets and the future of finance: https://t.co/ZE1WtpstES pic.twitter.com/XxBNBwlYgv – World Economic Forum (@wef) 8. June 2021
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In the past year, the DeFi industry has grown to hundreds of billions of dollars through use cases such as decentralized loans, loans, self-paid loans, unsecured trading and return on assets delivered. Thus, a whole new description of cryptocurrencies was born – from simple storage of value or assets to financial privacy – and in the past week, thousands ofFi projects and clean protocols have been launched. And because institutions are reportedly interested in niches, the toolkit aims to provide a framework for understanding the underlying factors that should influence policy decisions. It provides an overview of the BeCeFi, discusses and illustrates the benefits and risks with concrete examples, and describes the legal and regulatory measures. We are going through a critical period for DeFi. Following the rapid growth of cryptocurrencies and price activity in general, governments are keeping a close eye on cryptocurrencies and decentralized applications, said Sheila Warren of the WEF Executive Committee. She added: This toolkit is an important first step in helping policy makers and regulators find their way in this rapidly evolving field. By outlining the potential risks while highlighting the opportunities for innovation, we hope it will be a valuable tool for an informed approach to policy and regulation.
Other co-authors have focused on the negative aspects of an evolving industry to explain why a standard toolkit is needed. DeFi has transformative potential for financial services around the world, but it also presents some serious challenges, said Kevin Verbach, director of the Blockchain and Digital Assets Project at Wharton University. He added: Policy makers and regulators need a framework to address these issues responsibly. This toolkit provides such a step-by-step plan. The toolkit includes contributions from an international panel of experts, including academics, legal practitioners, DeFi entrepreneurs, technologists, policy makers and global regulators. This is the second report in this series, following DeFi beyond the hype. Government officials from around the world have been involved in the creation of the toolkit, including those developing the European crypto asset market system (MiCA) and key US financial regulators. Meanwhile, politics is already gaining momentum. The Colombian government hopes to be one of the countries that will use this toolkit to develop policies and regulations.
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The World Economic Forum has published a new policy paper that is designed to help governments and regulators develop and implement distributed ledger technology (DLT) policies. This effort aims to make it easier for countries to get on board with blockchain technology.. Read more about wef blockchain interoperability and let us know what you think.
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