Professor Marco Di Maggio: Crypto, DeFi, and Monetary Policy (EP.179)

<p>Of all of the possible disruptive uses of cryptocurrency and blockchain, decentralised finance (or DeFi) might be the one most likely to bring this technology to a wider audience; and challenge the established finance industry in the process. For this week’s episode on crypto-based decentralised finance, we welcome economist and faculty member in the Finance Unit at Harvard Business School, Professor Marco Di Maggio. Tuning in, you’ll learn everything you need to know about DeFi and cryptocurrency, from the most basic definitions to the potential macroeconomic and geopolitical implications of a decentralised reserve currency and the effects  of decentralisation on monetary policy transmission. Tuning in, you’ll learn the definitions for DAOs, DEX, NFTs and more, and Marco elaborates on some of the reasons that decentralisation is seen as an improvement over central systems as well as some of the issues that it represents. Make sure not to miss this enlightening conversation with Professor Marco Di Maggio as he shares his powerful contrasting perspectives on this inherently libertarian technology.</p> <p> </p> <p><strong>Key Points From This Episode:</strong></p> <p> </p> <ul> <li>Marco defines cryptocurrency; simply put, it’s digital currency. <strong>[0:02:59]</strong></li> <li>Find out what a DAO is; a community-led entity with no central authority. <strong>[0:03:58]</strong></li> <li>How a DAO is different from a corporation in the way it values decentralisation. <strong>[0:05:56]</strong></li> <li>Stablecoins as cryptocurrency pegged to fiat currency and backed by collateral. <strong>[0:07:07]</strong></li> <li>Learn about decentralised exchanges or DEX, the bonding curve, and Uniswap. <strong>[0:09:28]</strong></li> <li>Why decentralisation is seen as an improvement over centralisation; greater transparency and access requiring no counterparty. <strong>[0:12:32]</strong></li> <li>When decentralisation is not a good solution given the lack of accountability. <strong>[0:14:40]</strong></li> <li>Marco expand