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US Treasury Department Explores Incorporating Identity Checks into Smart Contracts, Triggering DeFi Core Concerns
Summary: According to Cointelegraph, the US Treasury Department is exploring whether to directly incorporate identity checks into decentralized finance (DeFi) smart contracts, with critics warning that this move could rewrite the fundamental basis of permissionless finance. Ubuntu Tribe CEO Mamadou Kwidjim Toure stated that this initiative is like 'installing cameras in every living room,' potentially hollowing ...
According to Cointelegraph, the US Treasury Department is exploring whether to directly incorporate identity checks into decentralized finance (DeFi) smart contracts, with critics warning that this move could rewrite the fundamental basis of permissionless finance. Ubuntu Tribe CEO Mamadou Kwidjim Toure stated that this initiative is like 'installing cameras in every living room,' potentially hollowing out the core of DeFi by turning a neutral, permissionless infrastructure into one that requires government-approved identity credentials for access. However, supporters argue that establishing Know Your Customer (KYC) and Anti-Money Laundering (AML) checks in blockchain infrastructure can streamline compliance and keep criminals at bay.
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Link: US Treasury Department Explores Incorporating Identity Checks into Smart Contracts, Triggering DeFi Core Concerns [Copy]
