DeFi – The End of Banking System As We Know It

I predict that the emergence of finance and an economy built on DLT technologies (Distributed Ledger Technology) will profoundly transform society in the decades that come, with or without the so-called DeFi from the libertarian cryptocurrency ecosystem.

I am Yann Le Floch, banker of digital currencies. I will put this theme into perspective with a few questions in order to question the path of our various truths. Will money be an absolute standard or a relative value, especially at through the use of smart currencies? Will the utility function of the economy remain profit, or could other utility functions be monetarily structured? The growth will remain a synthetic notion, or will it become multidimensional from a economic and societal point of view in the broad sense, in particular a declining one, via growth decreasing? The profit utility function is guided by so-called market laws, functions complementary utility could they exist through market laws? Money creation could it be guided by both entropic and negentropic vectors, in particular for respond to environmental and societal capital side effects.

Value chains economic aspects could present democratic characteristics in the strict sense. Democracy shareholders, or debt holders, can it be the only form of economic democracy in defining the price of a financial asset. Could the definition of a market price be modified by a definition of a market price. Wouldn’t the economy be guided by a invisible hand but invisible hands.

The technical functioning of central banks and banks will thus be profoundly modified, to enrich the functions of money. The consolidation of the crypto-asset ecosystem, particularly within the DeFi, or decentralized finance, answers only very fragmentarily to these questions to date, while remaining guided mainly by the real and symbolic hopes of speculation. The institutions classics might have the capacity to transform to answer these questions. Do you believe my prediction?