The rise of decentralized finance (DeFi) has led to sophisticated players, rather than retail investors, receiving the majority of profits in the sector, according to a report from the Bank for International Settlements (BIS). The report revealed that a small group of market participants with above-average resources provide around 85% of liquidity on decentralized exchanges, while retail investors capture less than 20% of the market share. The report cited variations in skill levels, specialization, and economies of scale as factors contributing to the dominance of the experienced minority. Meanwhile, the central bank of Malaysia, Bank Negara Malaysia (BNM), is exploring the potential benefits of launching a central bank digital currency (CBDC) for wholesale use in the country's financial system. The BNM believes a wholesale CBDC could improve payment efficiency and address issues related to cross-border payments. The bank has been testing the use of CBDCs since 2017 and has engaged in collaborations with other central banks to explore the technology further. Despite its cautious approach, the BNM is conducting research on distributed ledger technology for central bank digital money and is partnering with other central banks on projects to enable instant international payments.



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