OECD: Why Decentralised Finance (DeFi) Matters And The Policy Implications

The growing application of Decentralised Finance or DeFi and its increasing interconnectedness with traditional markets presents an urgent challenge for policy makers, as DeFi applications give rise to important risks and challenges for participants and the markets.

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This report provides an explanation of DeFi and its applications and then describes the evolution of DeFi markets to date. It explores the benefits and risks of DeFi and the DeFi/CeFi intersection and puts forward policy considerations.

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