A new system for trading derivatives Tracer DAO has raised $US4.5 million from leading investors in the booming area of DeFi (decentralised finance) and its local developer Brisbane-based Mycelium is creating jobs in Australia.
With the rapid growth of DeFi products, like FinTech, employment is expected to increase in Australia over the coming years.
Decentralized Finance is a growing global
It promises cheaper and better access to financial services
by disintermediating centralized intermediaries.
DeFi also promises interoperability across blockchains to bust
banking silos, greatly promoting innovation and building vibrant financial
However, DeFi is not without its own challenges and risks both
old and new.
The goal of automating the delivery of
financial services and reducing human dependencies also has the congruent
effect of reducing oversight and control.
This scholarly article by Nic Carter and Linda Jeng provides an excellent conceptual framework to understand
the drivers of risk in DeFi.https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3866705
Decentralised Finance (DeFi) is expected to emerge over the next decade, creating a parallel financial system operating on the internet.While bitcoin can operate as a means of payment or as a new form of commodity, DeFi projects go further, from lending to insurance and derivatives.The arrival of central bank digital currencies (CBDCs), which will enable DeFi, are perhaps five years away, while the emergence of the new internet-based finance system is probably an issue for the 2030s.Digital currencies and digital identity are an important part of enabling DeFi, and once you have these, you essentially have the missing pieces. Greg Medcrafthttp://www.afr.com/business/banking-and-finance/greg-medcraft-s-wa
Leading neobank UP has done its bit to accelerate Open Banking in Australia by becoming the 7th bank to make its data available as a Data Holder.This means UP's circa 300,000 customers can share their financial data with other accredited Open Banking participants (such as personal financial management app, Frollo, and CBA).UP's runaway popularity with a digitally-native customer base makes it easily the most requested institution by customers of Frollo and similar money-management tools, and so the early move to share data can't be understated in putting a well-timed rocket under the Open Banking roll-out.https://mozo.com.au/neobanks/articles/neobank-up-joins-frollo-open-banking-platform