This is a summary from a recent report released yesterday by BIS (Bank for International Settlements).
The report also takes deeper look at Crypto and DeFi. Below is a short note from that report – See comment for the link to the report.
“Crypto and DeFi have deeper structural limitations that prevent them from achieving the levels of efficiency, stability or integrity required for an adequate monetary system.
In particular, the crypto universe lacks a nominal anchor, which it tries to import, imperfectly, through stablecoins.
It is also prone to fragmentation, and its applications cannot scale without compromising security, as shown by their congestion and exorbitant fees. Activity in this parallel system is, instead, sustained by the influx of speculative coin holders.
Finally, there are serious concerns about the role of unregulated intermediaries in the system. As they are deep-seated, these structural shortcomings are unlikely to be amenable to technical fixes alone.
This is because they reflect the inherent limitations of a decentralised system built on permissionless blockchains.”
Above definitely is a good indicator on the direction regulators will take in regulating Crypto, DeFi and blockchain (if any).
The link to the BIS report section on “The future monetary system” is here: https://bit.ly/3QPBCQq