This week at the SIBOS conference, the topic of Recharging Global Finance was debated, and a number of venture capitalists shared their thoughts on what money might look like in 2040 at an innovation panel.
Matt Harris, of Bain Capital Ventures spoke on the subject of decentralized finance, outlining a future in which DeFi dominated the financial market.
The managing director of Bain Capital had the following words to say about Defi in his presentation at this years SIBOS conference:
“By 2040, we will largely be done with the bad trade that is fiat currency, where we give our capital for free to the government, for the privilege of having it diluted by the tax of inflation,”
With regards to the adoption of DeFi by governments, Harris was hopeful if not cautious in his view of governmental adoption:
“I know what I hope, which is that they embrace it. And don’t start a new cold war on the government side, and don’t lean into enhanced regulation,”
US private equity fund Bain Capital recently launched a cryptocurrency investment fund called BCV Crypto Fund I, L.P. according to a filing with the SEC, and is the first of its kind as a pooled investment fund. The fund is no stranger to investing in DeFi, and has has invested in various cryptocurrency, decentralized finance, and blockchain-based projects in the past, such as Digital Currency Group, Compound Finance, and BlockFi.
With crypto adoption on the rise, fund managers and key figures in mainstream finance are adding their voices to institutional investment in crypto.
At the SIBOS conference, Harris was asked by a judge whether DeFi would simply layer on top of existing technology, as historically it has done so. Harris replied to this in the following way:
“I’ve been an incrementalist my whole career. I work at Bain Capital. I’m not a radical revolutionary,” Harris responded. “And it is only recently frankly through watching and investing the last four years in decentralized finance, that I’ve come to the conclusion that that historical pattern you mention of layering and evolution is actually no longer going to be the pattern.That decentralization in its fullest flower actually overthrows what came before.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.