MakerDAO executive praises Brazil and says DeFi is ‚the future of money

Director of MakerDAO talks about the critics of centralization of the DAI, about plans for Brazil and the DeFi market.

MakerDAO executive praises Brazil and says DeFi are ‚the future of money’NEWS

Nadia Alvarez, Business Development Director for MakerDAO in Latin America, gave an interview to Exame, praising the Brazilian crypto market and saying that MakerDAO and decentralized finance, or DeFi, are „the future of money.

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According to the former, decentralized finance is the biggest financial revolution in recent years and the sector will be in the future of global economies:

„It is very important to remember that DeFi is something very new, it has only two years to live, so it is natural that there are doubts and even some distrust. Over time, we will reach wider audiences. I don’t know exactly what the future of money will be like, if only with decentralized services like DeFi, if it will be something mixed… but DeFi is here to stay, and I am sure we are helping to build that future“.

She also highlighted the importance of the Brazilian market, which already has a series of exchanges negotiating stablecoin DAI, and outlined DeFi’s plans for action in the country:

„Brazil is a very important market. And it will be even more so, especially after the government issues money due to the pandemic, which should increase the scenario of devaluation of the Real. […] The devaluation of national currencies is a trend for Latin America in the coming years, so it is important that the peso knows other options. In Brazil, we have produced content, tutorials and other materials to teach people about DeFi“.

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The MakerDAO community, which has already been criticized for using centralized assets as collateral, has also been defended by Álvarez:

„It is the community that decides what is best for the protocol, and that makes it even stronger. The DAI is a basket that includes several tokens, which reduces the risk to asset stability. In the case of MakerDAO, the way is to have several collaterals. In the beginning it was just Ether, but to grow you have to have more collaterals, which makes the asset more democratic, accessible, and safe“.

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It recognized that decentralization cannot always be beneficial to mainstream and government acceptance of cryptomites. According to her, societies may need a hybrid transition to begin to rely fully on decentralized protocols:

„Decentralisation, which is a positive point of the DeFi protocols, may initially be a problem, since many people who are not yet used to that model want centralisation. They want a call centre, technical support, they feel safer with someone in control. So you have to educate people. And, at the end of the day, the two ways can coexist“.

According to Defi Pulse, the Maker now has approximately $2 billion of assets pledged in the protocol.