Trust Token CEO: 'DeFi is a transformation in finance'

Benoit Coeuré, Bank for International Settlements official and former member of the European Central Bank’s board of directors, said in a recent speech at an EuroFi event that stablecoins and DeFi in general were ‘challenging banks’ business models’ and authorities had to work on creating official digital assets quickly, highlighting growing fears in traditional financial circles over the boom in digital assets.

According to Coeuré, both stablecoins and decentralized financial firms pose a threat to depositories and banks:

Central banks must consider the role of commercial banks in the system

He added that regulators and central banks should take into account the role that banks will play after central banks start issuing digital currencies, the impact of these new assets, and the role of mediators in the digital financial system. While central banks accept the role of traditional financial companies in new digital asset infrastructure, the challenge remains:

So will stablecoins and DeFi destroy finance as we know it? Yes, and that’s not a bad thing according to Rafael Cosman, Cofounder and CEO of Trust Token, a platform to create asset-backed tokens:

Emerging models inevitably disrupt old ones

According to Cosman, emerging business models will certainly disrupt old ones: