Ark Invest CEO: Regulators should not block transparent and auditable DeFi

According to reports, Cathie Wood, CEO of Ark Invest, stated on social platforms that when the US banking system was paralyzed by bank runs threatening regional banks, Bitcoin, Ethereum, and other encrypted networks continued to operate unaffected. The instability of the banking system poses a threat to stable currency, which is the entrance to DeFi, in sharp contrast to what regulators have said.

Interpretation of this information:

The statement made by Cathie Wood, the CEO of Ark Invest, highlights the importance of cryptocurrency as a reliable system for financial transactions. In her statement, she points out that during the banking system’s instability due to bank runs, digital currencies like Bitcoin, Ethereum, and other encrypted networks remained unaffected. This observation showcases the benefits of cryptocurrency as a decentralized system that works independently of centralized banking systems, ensuring its stability and reliability.

Moreover, Wood’s statement highlights the threats faced by stable currencies due to the instability of the banking system. Stable currencies are currencies backed by a reserve asset, providing a sense of stability to the holder. However, this stability is compromised during a banking system’s instability, leading to a decline in their value. Thus, Wood’s statement emphasizes the importance of stable DeFi currencies, which are not affected by the instability of centralized banking systems.

The statement made by Cathie Wood also highlights the difference between the regulators’ opinion and the practicality of digital currencies. Regulators have expressed their concerns regarding the security of decentralized finance, arguing that it poses significant risks to investors. However, Wood’s statement reaffirms the stability of decentralized finance systems like cryptocurrency, showing that it is an effective solution during times of uncertainty.

In conclusion, Cathie Wood’s statement highlights the benefits of cryptocurrency as a decentralized system that works independently of centralized banking systems, ensuring its stability and reliability. Moreover, it emphasizes the importance of stable DeFi currencies, which are not affected by the instability of centralized banking systems. This reflects a difference in opinion between regulators and the practicality of digital currencies, showing that they are effective solutions during times of uncertainty.