Web3 will change finance!? Talking about DeFi, which is attracting attention from technology and regulations[Event Report]| coindesk JAPAN | Coindesk Japan

1 year ago 97

The world is paying attention to Japan’s move to place Web3 as a national growth strategy. Among them, DeFi (decentralized finance) is showing rapid growth with the adoption of a wide range of technologies. The use of blockchain can be extended beyond value movement to more advanced and complex uses in finance.

Will DeFi pose a threat to the existing financial system, TradFi (Traditional Finance), or will it grow with it?

On April 21st, btokyo members held “‘DeFi meets TradFi’ – The Future of Finance Changed by Web3”. We have held various events so far, but this is the first time to hold a DeFi-specific event. DeFi tends to have high hurdles due to the complexity of the mechanism and the difficulty of the service, but we are seeking to provide easy-to-understand content. This time, experts from various fields such as politicians leading the Liberal Democratic Party web3PT, founder of Protocol Labs, major financial institutions, and legal experts gathered to exchange opinions from both sides of technology and regulation.

Japan is back, Again. Aiming for the center of the world

Keynote 1, “Web3 Today and Expectations for Japan: Global R&D Leaders and Japanese Rule Makers Talk,” presents Juan Benet, Founder and CEO of Protocol Labs, and a member of the House of Representatives who serves as the secretary general of the project team of the Liberal Democratic Party web3PT. Mr. Akihisa Shiozaki talks.

Juan Benet said, “I have been involved in the web3 industry for many years, but I grew up with a lot of Japanese cultural influences. I think Japan is an essential place for web3 to grow.” . Representative Shiozaki introduced positive efforts from the political world based on the web3 white paper released in April.

Related article: What is the aim of the LDP “web3 white paper”? ── Interview with PT Secretary General Akihisa Shiozaki
https://www.coindeskjapan.com/180164/

In the web3 white paper, “Japan is back, again.” “Japan will seize this opportunity to advance many initiatives in the three web areas,” Shiozaki said. After hearing Shiozaki’s explanation, Mr. Juan Benet said, “Many entrepreneurs will pay attention to Japan and start their business in Japan.”

From the cutting edge of the world: the spread of DeFi and expectations for Japan

In “regulation or expansion – global DeFi market situation”, Mr. Charles d’Haussy, CEO of the dYdX Foundation, which develops the world’s largest decentralized exchange (DEX) dYdX, took the stage.

Touching on the importance of dialogue with regulators, Charles said, “Our responsibility is how we engage with regulators, explaining and demonstrating how DeFi is different. I need it,” he said.

Regarding dYdX’s efforts, he said, “Through DeFi, we will democratize access to finance,” and appealed for the need to make DAOs (decentralized autonomous organizations) scalable and efficient.

At the end of his lecture, Mr. Charles introduced the view that “Japan x Web3 = love.” During his stay, he said he realized Japan’s strong interest in the Internet and Web3. He also predicted growth for Japan, which leads the Internet and is rich in games and other content.

Gathering of Professionals – Thorough Debate on Japanese Technology and Regulations

In the panel discussion, a variety of professionals, including those with experience in the authorities, legal experts, major domestic financial institutions, and DeFi players, held discussions.

Masakazu Kikuchi, Founder and CEO of Secured Finance AG, started the discussion. From the overview of the company’s services, I introduced the current situation of DeFi.

Mr. Kikuchi, who was in charge of financial product development at a foreign-affiliated securities company, pointed out that although there is a spot value exchange function in the current crypto asset industry, the “Capital Market” does not yet exist. He touched on the possibility of a large market emerging in the future.

The company launched its first product in April. We are developing a mechanism to find a fair price for zero-coupon bonds. Regarding the development of Secured Finance services, Hideaki Kudo, Executive Director, Digital Asset Promotion Office, Nomura Holdings, said, “I’m really surprised. The changes and improvements in the last few years have been intense, and I feel that the degree of perfection has increased.” .

Talking about regulations from an international perspective from Japan

Domestic regulations were explained by Masafumi Masuda, a partner at Mori Hamada & Matsumoto, who is also a member of the web3PT working team. At present, although there is no proposal that discusses DeFi head-on, it explains that multiple related points are indicated. Regarding stablecoins, after discussions, he introduced that permissionless types can also be handled, and said, “For DeFi, a good environment is being established.”

Next, Mr. Yuji Kawata, senior researcher at Mitsubishi Research Institute, who is familiar with international finance, introduced the current status of each country’s rules regarding money laundering. He pointed out that stablecoins and bitcoin (BTC), which is classified as a commodity in the United States, are less regulated by the U.S. federal government. He cited a contributing factor to the collapse of FTX.

In Europe, the Crypto Asset Market Regulation Bill (MiCA) was passed this month, and each country is rushing to develop rules, but it is predicted that it will take a long time before common international regulations are implemented.

Related article: EU’s MiCA, a template for international regulation?
https://www.coindeskjapan.com/181820/

Mr. Kudo of Nomura HD pointed out about the web3 white paper, “Security tokens are within the scope of our activities, and the results were good,” and “The government has high expectations for crypto assets.” On the other hand, he said, “It will take a long time to reach mass adoption.

What is the road to the spread of DeFi in Japan?

Regarding the Japanese market, Mr. Kikuchi said, “The Japanese market has had low interest rates for a long time, so if interest rates are even slightly higher, they look very attractive.” It is generally conceivable to put the balance) on the existing format and sell it.”

When asked if such a service would take over the domain of existing financial operators, Mr. Kudo said, “It’s a completely new domain.” As for the future spread of the system, he said, “It is necessary to accumulate examples and trust.”

Mr. Masuda said, “DeFi cannot be stopped, and it will continue to grow. Moreover, the moment an attractive interface appears in addition to attractive products, it is highly likely that the chasm will be crossed. ” he said. In order for the state to appropriately control risks in such a situation, he said, “It is a mechanism that already exists, like the Internet, and it cannot be stopped, so it will not regulate the protocol.” “It is the role of the legal system to induce appropriate incentives,” he said. Kawata added that the common understanding of the Financial Stability Board is that “regulations should be done not on technology, but on services that use technology.”

Midori Kanemitsu of bitFlyer, who served as the moderator, concluded, “The day when I will be involved in DeFi at work may be far away, but I want to keep watching trends as a fan,” and introduced the main points of discussion on his Twitter.

At this event, we got a glimpse of the possibility of new services through DeFi. Furthermore, it was a lively panel discussion where discussions were exchanged from diverse perspectives on the ideal regulatory environment.

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N.Avenue, which operates coindesk JAPAN, will continue to hold events and information to think about the future of web3 and crypto assets. Please join btokyo members and check the latest trends.

｜Text: btokyo members
| Editing: coindesk JAPAN
｜Image: N.Avenue

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