Acting OCC head warns that ‘fools gold’ in DeFi reminds him of lead-up to GFC
Acting head of the United States Office of the Comptroller of the Currency (OCC) Michael Hsu has warned that the unique monetary merchandise developed in some quarters of crypto and DeFi are reminiscent of these that precipitated the 2008 Global Financial Crisis (GFC).
Speaking earlier than the Blockchain Association on Sept. 21, Hsu warned that “innovation for innovation’s sake […] risks creating a mountain of fool’s good,” drawing analogies between the speedy proliferation of digital asset derivatives and the explosion in mortgage and debt derivatives, such because the Credit Default Swaps (CDS) that preceded the 2008 international monetary disaster:
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