U.S. and U.K. regulators are calling for greater international cooperation to help regulate decentralized finance (DEFI) and the crypto field.

Speaking at the Bank for International Settlements (BIS) Innovation Summit on Wednesday, Federal Reserve Chairman Jerome Powell said, “I think if we’re going to tap into the potential of

digital assets and services, much of the progress we make along the way will depend on a really high level of international collaboration.” .

Andrew Bailey, governor of the Bank of England, agreed that regulators must deal “quickly” with DeFi and the growth of the industry.

” We have to work together internationally,” Bailey said at the summit. Because if we try to do it in our own place, we will fail because it will escape us, and …… it will always be somewhere else.” .

According to a chain analysis, the UK received $170 billion in value from the DEFI deal between June 2020 and July 2021, the highest in Europe. at the time.

 

Central Bank Digital Currency

Powell said the Fed is sharing its analysis of central bank digital currencies (CBDC) with six other central banks at the Bank for International Settlements. Their discussions will cover the entire

digital space, including StableCoin, crypto assets and financial innovation.

Powell said, “We are committed to working with our domestic and international counterparts to ensure that the payments and monetary system evolves in a responsible way that brings

improvements while maintaining safety, soundness and financial stability.” .

In January, the Federal Reserve released its long-awaited white paper on central bank digital currencies, but did not commit to creating a digital dollar. The white paper states that any CBDC

should ensure privacy, be an intermediary for the private sector, be transferable, and comply with rules on money laundering and terrorist financing.

 

Worldwide

The Federal Reserve is actively working with other central banks and international partners to move a cross-border roadmap for the Group of 20 (G20) countries forward. Powell added that the

roadmap has the potential to address frictions in G20 international payments.

On Tuesday, the BIS Innovation Center, along with the central banks of Australia, South Africa, Singapore and Malaysia, wrapped up their ongoing experiment with a multi-CBDC platform known

as Project Dunbar. The researchers found that their prototype platform for resolving state-backed virtual assets was “technically feasible”.

Meanwhile, European Central Bank President Christine Lagarde said the bank urgently needs to complete its work on the digital euro. The ECB is expected to complete its digital euro project

within two years.