DeFi with Chinese characteristics? How China may centralize crypto finance

I recently spoke to Angie Lau of Forkast News to discuss the burgeoning DeFi ecosystem in China and what the future may have in store. Feel free to leave feedback.

With total value in DeFi now exceeding $10 billion — much of the surge from Chinese capital — China is looking for ways to enter the industry on its own terms.

“China wants this activity to be centralized,” says FinxfloCEO James Gillingham “So that’s where we anticipate the market moving within the next 3 to 6 months.

Gillingham expects China to build its own DeFi network, but likely in the form of CeFi, or centralized finance. How would that work?

There is a misconception here. DeFi is DeFi, it won’t be centralized.

Hi minionabct, I agree completely, what I was trying to express is that China sees the power of Defi, and want to capitalise upon it for their own benefit and as such will look to structure some of the features of DeFi that they can control and make their own private or permissioned versions.This is the same thing we have seen with Blockchain technology,In some aspects China suppressed crypto only to later champion thier own blockchains. which is the basic building block that all things decentralised can be built upon, but remember Blockchain itself has the potential to be centralised and decentralised. Some people and entities actually prefer centralised over decentralised due to various factors.

Whe structure some of the features of DeFi that they can control and make their own private or permissioned versions, this won’t be called DeFi tho. It will be like the way we differentiate private/consortium blockchain VS public blockchain, which I’d consider this as a totally different ecosystem.

China is focusing on DCEP, BSN, rather than tapping into the DeFi space.

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