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ING – the financial services colossal has initiated collaboration with the Netherlands' financial authority on engrossing decentralized finance. This Dutch multinational banking corporation is working on its Defi project where volatile cryptocurrencies shall not be a part.
Overview of the Defi Project Launched by ING
Addressing the panel discussion, the CIO Annerie Vreugdenhil acclaimed Singapore's welcoming executive environment. Until last week, the Monetary Authority of Singapore hadn't foreseen banning Bitcoin. Moreover, Singapore's central bank chairman manifested openness to stablecoin innovation.
Dutch Behemoth Evaluates its Financial Projects
The Dutch multinational banking and financial services corporation has plans to evaluate its Defi lending project with the help of the Authority of the Financial Market (AFM) sandbox. The AFM sandbox is a Dutch regulatory center for progressive financial products. With the AFM new businesses need not face undue obligations from authorities.
In the words of a spokesperson from ING, "No concrete proposition had been fostered for the regulator yet." Lately, the bank had already confirmed that inconsistent cryptocurrencies; such as Bitcoin; won't be congruent with the project.
Aave – an existing supreme protocol that allows users to borrow cryptocurrencies by proffering crypto as collateral; for example, stablecoins. Having said that, these loans must be overcollateralized provided dealing in Wrapped Bitcoin (WBTC) or Ethereum (ETH). This is to mitigate against their volatile price swings.
ING had critiqued the protocol from banning the creation of new money to finance entrepreneurs and companies.