Crypto Banking is the Inevitable Future of Banking, But There are Risks
Too Long; Didn't Read
Decentralized finance (DeFi) and centralized finance (CeFi) build their authority and gain mainstream adoption. CeFi platforms are not FDIC insured for such products in the event the platform goes bust. The most apparent risk is [counterparty risk], counterparty risk. The second risk to be aware of is hacking or cyber risk. The third consideration comes down to traditional fraud risk. For example, a bank may not return due to fraudulent activity or negligent risk management.