Blockchain Association announces the launch of the Open Finance Working Group

The Blockchain Association is pleased to announce the launch of the Open Finance Working Group. This mission of the Open Finance Working Group will be to facilitate discussion among industry participants, educate policymakers, and propose public policy solutions on issues related to the decentralized finance (DeFi) community. The working group will be open to all members of the Blockchain Association with an interest in DeFi and will be chaired by Jason Somensatto with 0x.

DeFi has unique issues, and it’s important to start the discussion now

Most policymakers in Washington are still trying to wrap their heads around the basics of open blockchain networks and cryptocurrencies, and the Blockchain Association is working to meet regulators and lawmakers at a level that makes sense for their role. As we look to the future, we know that open blockchain projects are only going to get more complex, and extend to more use-cases. This is evident in part from the recent rise in the number and adoption of open finance projects.

Open finance generally refers to a class of projects and technologies that can be used to conduct various types of financial transactions on open blockchain networks faster and in a more transparent manner by utilizing software rather than relying on traditional financial intermediaries. There are already many exciting open finance projects on networks like Ethereum that allow users to exchange, lend, borrow, and strategically manage their digital assets — some in innovative ways not previously seen in traditional finance.

Echoing the creation of widespread communications programs that are built “on top” of existing Internet protocols — -such as email, video conferencing, and text messaging — — open blockchain networks are catalyzing new and more efficient modes of financial transactions. This development has the potential to expand access to financial services, improve existing financial infrastructure, and change the way we transact in a modern global economy.

Although it’s still early days for these nascent technologies, there is a potential for public policy issues to arise that could affect these innovative and promising protocols and projects. The Blockchain Association, through this working group, will work to ensure that the industry is ahead of the curve on these issues.