Decentralized finance, often known as “defi” for short, provides financial instruments and services through smart contracts on a programmable, permissionless blockchain. This approach reduces the need for intermediaries such as brokerages, exchanges, or banks. Centralized finance, by contrast, works through financial intermediaries, such as brokerages, exchanges, or banks. In his remarks, Federal Reserve Governor Christopher J. Waller will discuss his views on both defi and centralized finance as part of the 19th Macroeconomics Workshop that is taking place at IHS.
Watch the presentation (starting 6.10 p.m.)