A new IMF report on global financial stability says cryptocurrencies not very useful for evading sanctions, decentralized finance offers a balance of risk and benefit.
This feature analyses decentralised finance (DeFi), a new form of crypto intermediation that uses automated protocols on blockchains and stablecoins to facilitate fund transfers. Even though links with traditional finance are currently contained, DeFi warrants closer monitoring because of high leverage, limited shock-absorbing capacity and built-in interconnectedness.