CNBC recently reported that more and more US banks will adopt Bitcoin, allowing their customers to buy, sell and own the cryptocurrency through their bank accounts. This is according to cryptocurrency custodian NYDIG, whose recent partnership with Fidelity National intelligence services could unite banks and Bitcoin in one space.
ING's interest in Defi
Interestingly, in the same way that US banks are adopting Bitcoin (quotation Bitcoin), banks in other parts of the world pay close attention to other emerging technologies in the cryptocurrency space.
More recently, ING, a leading Dutch-based bank, revealed that everyone's attention isn't tied to just Bitcoin. Decentralized finance, popularly known as DeFi, appears to be equally attractive to the company. In a recently published report, ING bank revealed that it has analyzed the DeFi industry and apparently came to the conclusion that DeFi may possess some of the qualities that could make it more revolutionary than Bitcoin in the financial market. Here are the words used by ING to define this sector: “DeFi could be more disruptive than Bitcoin for the financial sector”.
In summary, ING weighed the positives and negatives of DeFi and drew up a bullish conclusion for the sector. Among the many valuable qualities that come with DeFi's structure, flexibility is what ING has found to be a blessing and a curse for the industry. The DeFi industry's lack of regulation makes it highly accessible to users who can explore DeFi services without worrying about any restrictions.
However, the lack of regulation affects criminal activities
However, the lack of regulation also creates a loophole for people with malicious intent. As ING explains: “DeFi is flexible because there is a lack of regulation. This lack of regulation allows services to be created and used, in principle, without limitations. However, there is clearly a downside to DeFi's lack of regulation, as it can easily be used for fraudulent activities as well ”.
It is therefore crucial that, in the future, regulators are open to launch guidelines that are right for the industry, as this would foster the growth of the industry and help it transcend into a more trusted space.
In ING's bullish report, there is an important point in how the bank views DeFi's future. Although most would argue that the centralized ecosystem cannot coexist with decentralized industry, as they are both different in so many ways, ING challenges this view by stating that: “Based on our analysis and lessons learned, we conclude that the best of both worlds is achieved if centralized and decentralized financial services cooperate ”. And what do you think of ING bank's statements? Let us know in the comments below!
