The Bank of International Settlement (or BIS), a global financial institution that is owned by central banks, will open Monday PublishedA report on the Decentralized Finance Industry (or DeFi) was published. In the opening paragraph, the article stated that DeFi is “decentralization illusion”. This was because governance requires some level of centralization. Additionally, the structural aspects of DeFi lead to concentrated power. The article continued:

BIS claims that DeFi protocols all have elements of centralization due their central governance structures. It is somewhat similar to corporate legal entities. Additionally, some DeFi blockchains can concentrate power in the hands of coin-holders large enough to sell tokens.