Central Banks are about to gaslight degens.  Covered: Central Banks v. DeFi Who Wins? What A Centralized Rug Pull Could Look like Central Banks v. DeFi Central Banks are clearly gearing up for an assault on their burgeoning rival, Decentralized Finance. We’re not just talking about one central bank, or two, or three even. We […] The post Central Banks Plan Attack on DeFi appeared first on CryptosRus.

Central Banks Plan Attack on DeFi

Central Banks are about to gaslight degens. 

Covered:

  • Central Banks v. DeFi
  • Who Wins?
  • What A Centralized Rug Pull Could Look like

Central Banks v. DeFi

Central Banks are clearly gearing up for an assault on their burgeoning rival, Decentralized Finance. We’re not just talking about one central bank, or two, or three even. We are talking about an entire syndicate of banks.

According to a recent report, the “Bank for International Settlements” sent their footsoldiers out to launch an attack on DeFi.

As the saying goes, first they ignore you, then laugh at you, then fight you, then you win. It appears we are in the fighting stage. With DeFi total value locked reaching nearly 300 billion in 2021, when it barely even existed in 2019, the central banks are clearly quivering at what may lie ahead.

Who Wins?

As CNBC put it: “The central bank of central banks is worried about decentralized finance.” Because of zero-percent interest rates and a debt bubble ready to explode, people worldwide are taking their money out of fiat to find a yield elsewhere, mainly crypto assets. Record low yields have been ignored by the central banks, and that’s why stocks, real estate, and crypto have seen incredible growth in the last year.

A recent report by the central bank syndicate said of DeFi they are concerned that the decentralization aspect is an “illusion.” The manager of the group Agustin Carstens said: “What we found is that, first, the decentralized aspect tends to be illusory.”  Carstens then went on to pretend that he cares about the users of DeFi being exploited, saying that “agents” play an important role in the protocols and not for the best interests of the users of DeFi.

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What A Centralized Rug Pull Could Look like

The group then went on to urge that DeFi “must be “properly regulated” in order to safeguard investors and boost trust in the market.” Of course, this is in the guise of protecting investors, but investors haven’t been hurt by any entity as much as central banks. The unchecked power they wield makes DeFi rug pulls look like child’s play.

The key distinction is you can choose which DeFi to use, you can control that risk. What you cannot control is the central banking system that has more power than any nation-state.

The Federal Reserve, the central bank of America, has more than 8 trillion dollars in assets. They hold the keys to the country. The same goes for all industrialized nations. And when they talk about “safeguarding investors” to ensure confidence, that is rich coming from the central banks. Why? The Federal Reserve has refused to be audited by our elected, congressional entities. 

Their reckless expansion of trillions of dollars in credit is even worse in light of the fact they regularly cannot account for where the “money” has gone. In 2009, after the major stimulus package passed to quell the recession, Federal Reserve Inspector General Elizabeth Coleman was asked by Congressman Alan Grayson (D-FL) to account for $9 trillion in off-balance sheet transactions.

Her answer? No one at the Fed knows or is keeping track of where the money has gone. This happens more frequently than you’d care to imagine, see here. 

So the biggest rug puller of all, the central banks, are worried that “the growth of DeFi poses financial stability concerns.” Again, how rich. Their evidence? Liquidity issues and “lack of shock absorbers”, whatever that means. Liquidity is easy for the central banks because they literally can print money and keep interest rates at 0.

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Carstens, the head of the central bank front group finished by saying that “it’s important that we as authorities don’t feel complacent [about DeFi].” It makes one wonder, and it could be kindly asked of him: “who the f**k elected you, Mr. Cartsens?”

Prepare for institutions to continue to ramp up FUD about DeFi, it is clearly their new vector to attack crypto. Just remember, now they are fighting us, but soon…we win. This ominous report by the ‘central bank of central banks’ shows one thing clearly:

If banks with trillions of dollars are this concerned, then they truly see DeFi as an existential threat and their dollars as a weak weapon to fight back. They are right.

The post Central Banks Plan Attack on DeFi appeared first on CryptosRus.