English Language · Reading Comprehension
The author concludes by noting the challenge of reconciling decentralization's efficiency with the need for systemic stability. Which of the following hypothetical scenarios would most significantly complicate this reconciliation for global policymakers?
- 1A quantitative study demonstrates that the censorship-resistant infrastructure of DLT leads to higher, not lower, transactional counterparty risk in the long term.
- 2A majority of DeFi protocols become so successful that the total value locked (TVL) surpasses the total market capitalization of the world's five largest legacy financial intermediaries.
- 3Central Bank Digital Currencies (CBDCs) are found to require significantly less energy consumption than current Proof-of-Work cryptocurrencies.
- 4Stablecoins achieve near-perfect price stability but only by maintaining reserves that are centrally managed by a single, unregulated entity.✓
Correct answer
Stablecoins achieve near-perfect price stability but only by maintaining reserves that are centrally managed by a single, unregulated entity.
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