CEO of Applied Blockchain: DeFi “is evolving at a tremendous pace”
The Applied Blockchain CEO has spoken at the House of Commons and Lords about blockchain
Ben-Ari went onto say that DeFi has evolved in the last 18 months, especially for those “people who hold cryptocurrencies”.
An advantage of DeFi which Ben-Ari touts is its lending function. It offers fully collateralised lending, as well as borrowing which is fully automated with its underlying costs close to zero.
The CEO simply states, “this is the future of finance”. Ben-Ari also trusts blockchain, as it is not operationally controlled by any single organisation; instead it runs on a smart contract and so Ben-Ari “fully trusts it’s execution”.
Ben-Ari was previously invited to speak at the House of Commons and House of Lords All-Party Parliamentary Group (APPG) on Blockchain, where he spoke about the issues surrounding blockchain with MPs and Lords.
The purpose of these APPGs is to “ensure that the UK plays a key role in the potential opportunities that blockchain can unlock” for the economy.
Shell is “very interested in blockchain”
Shell is a company that has worked with Applied Blockchain. It helped the oil giant to run its first product derivative trade on blockchain. Shell is an investor in Applied Blockchain as well.
Ben-Ari details how following Applied Blockchain assisting Shell, the oil company has showed great “interest in blockchain”.
The CEO added that the number of corporates exploring blockchain in the past 18 months has grown, in part due to the accelerated innovation in the crypto markets, including non-fungible tokens (NFTs) and DeFi.
CBDCs and stablecoins
With at least 81 countries actively exploring Central Bank Digital Currencies (CBDCs) according to the Atlantic Council’s GeoEconomic Center CBDC tracker, CBDCs are a real possibility for numerous countries.
Currently, in the UK, the Bank of England (BoE) and HM Treasury (HMT) have announced that in 2022 they will launch a consultation regarding a UK CBDC.
The CBDC would “be a new form of digital money issued by the Bank of England and for use by households and businesses for their everyday payments needs,” they said.
Stablecoins are crypto tokens with their price pegged to a fiat currency. Ben-Ari believes CBDCs and stablecoins will not become “direct competitors” as long as the CBDC does not run on a government protocol. This means the CBDC would only be able to be used on a government system. Ben-Ari does believe, however, that an advantage of a stablecoin is that it can be used in the DeFi world as it as emerging today, but without the volatility of the average crypto.
The Applied Blockchain CEO does not believe it will be optimal for governments to build the infrastructure of CBDCs, as they will inevitably fall far behind the private sector technology innovations. Instead, governments should look to regulate to manage risk in third party infrastructures.