As told by Charles d’Haussy, the CEO of dYdX Foundation, a not-for-profit entity pioneering the development of the dYdX protocol, the future of finance may not be an all-out war between centralized exchanges and decentralized finance (DeFi). Quite the contrary, centralized exchanges might serve as important gateways to DeFi.
In an Cointelegraph interview, d’Haussy highlighted his optimistic outlook towards a synergical future where centralized exchanges coexist and collaborate with DeFi platforms. While the dYdX foundation is heavily focused on achieving full decentralization and eliminating custody risks, d’Haussy did not discount centralized entities but instead appreciated their significant role in supporting and shaping the market early on.
As per him, the analogy of conventional banking institutions could define the future of decentralized and centralized finance. Traditionally, banks offer a wide array of services along with their core function of maintaining deposits. Emulating this, centralized exchanges could provide more straightforward and user-friendly integration to DeFi, along with their customary spot trading options. This could provide a ‘best-of-both-worlds’ scenario enhancing the overall crypto experience for users.
However, things are not completely rosy. The journey towards this harmonious coexistence between centralized and decentralized entities is not without hurdles. U.S Representative, Ritchie Torres, recently claimed that SEC should limit its enforcement cases to “bonafide bad actors” rather than treating most crypto assets as securities. He cautioned the SEC must reassess its ‘reckless regulatory assault on the crypto industry.’ This implies the emerging crypto landscape needs a regulatory setup that is supportive and aims to nourish its growth rather than suppressing it.
Cryptocurrencies, being a high-risk investment, should be approached with caution. Investors must clearly understand the potential risks involved before entering the world of cryptocurrencies. But with DeFi’s potential and the necessary regulatory uplift, the crypto ecosystem could soon enter a phase of expansive growing and flourishing that will empower many people to adopt crypto services in the manner they prefer. So, is the future of finance a harmonious coexistence of both worlds, or will one dominate the other? The roller-coaster continues!
Source: Cointelegraph
