The World Economic Forum’s DeFi Policy Maker Toolkit outlines how decentralized finance could reshape financial systems while posing new risks. It highlights opportunities such as expanding access to financial services, lowering transaction costs, and fostering innovation. At the same time, DeFi raises concerns around consumer protection, market integrity, cybersecurity, and financial stability. The toolkit provides policymakers with guidance across four areas: understanding DeFi structures and risks, adapting regulatory frameworks, promoting transparency and accountability, and fostering international coordination. By balancing innovation with safeguards, governments can enable responsible DeFi growth while protecting markets and consumers.

Join for free to read