Decentralized finance (DeFi) has a centralization problem and policy makers should use it to regulate the sector, the Bank for International Settlements (BIS) said in its latest quarterly review. The review, published Monday by the central banks’ liaison and coordination organization, examines developments in global non-bank financial intermediaries and offers policy perspectives. The review dedicated the first of its five special features to discussing DeFi and implications for financial stability. DeFi seeks to improve the efficiency of financial transactions by replacing traditional middlemen like banks and ... (full story)