Will adults that have used cryptocurrency also use DeFi to perform interest rate swaps? In a recent article, Simon Jones, the CEO of Voltz Labs suggests that may be the case. “He points to a CNBC poll that indicates that 20% of US adults report using cryptocurrencies.

However, the same poll indicates that 25% of those respondents view cryptocurrencies in a negative light, casting doubt on his argument that consumers will naturally use them for interest rate swaps,” said Tim Sloane, Vice President of Payments Innovation at Mercator Advisory Group. “[It also seems that] Jones is ready to see the gatekeepers of financial products and services replaced with decentralized, open and permissionless protocols,” he said. “These are indeed revolutionary technologies, but they are also a hotbed of criminal activity driven by the difficulty of validating the participants which makes Ponzi schemes and other criminal activities all too easy to implement.

While this article identifies challenges it fails to address that smart contracts are not yet sufficiently stable or transparent enough for interest rate swaps. ” .

By PaymentsJournal
Sep 21, 2022 00:00
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