Crypto and Financial Crises

Document Type

Presentation

Publication Date

Spring 4-9-2025

Conference / Event Title

IBC Bank & Commerce Bank 2024-2025 Keynote Speaker Series

Conference / Event Location

Laredo, TX.

Hosting Organization

Texas A&M International University

Abstract

Professor Allen discussed the crypto ecosystem (with a particular emphasis on DeFi), and explain how its fragilities mirror the fragilities of financial innovations developed in the run up to the global financial crisis of 2008. She cautions that crypto innovation will not democratize finance, make finance more efficient, or promote financial inclusion, and argues that – given crypto’s risks – it is therefore bad public policy to support this kind of innovation. In particular, she will emphasize that the integration of crypto into our traditional financial system is likely to make our system highly fragile, and so she argues for a firewall between crypto and traditional finance.

Conference URL

https://www.tamiu.edu/newsinfo/2025/03/ibcbankcommercebankseries32025.shtml

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