Offshore financial centers are in danger! They are about to be subsumed by DeFi.

Friends in finance all know that for super-large economies, finance generally has three major sectors: central, local, and offshore.
For the United States, whether it is the SEC, the Federal Reserve, or the Senate's Banking Committee that formulates financial policies, they all belong to the central sector. The local sector consists of financial institutions in various states. Outside of the United States can be classified as the offshore sector. The financial landscape of China and many other major countries can actually be divided in this way as well.
Before the advent of computer technology, local financial sectors in the United States were also quite powerful. Due to the limited efficiency of manual settlement transactions, the most impressive New York Stock Exchange could only process 7.5 transactions per second, which is about the same TPS as the Bitcoin main chain. Consequently, dozens of stock exchanges appeared across various states in the U.S., with cities like Chicago and Philadelphia being financial centers at the time. However, due to the development of computer technology and the improvement of trading efficiency, the liquidity of the securities market has increasingly flowed towards centralization. Now, the two major national exchanges in the U.S., the NYSE and NASDAQ, have almost harvested all the liquidity in the country.
The banking industry is similar, with several large national banks suffocating local banks in various states. Asset management is also concentrated in giants like BlackRock and Vanguard. The dominance of monetary policy and asset pricing is also in the hands of these central financial sector tycoons and their friends on Wall Street.
It can be said that computer technology has helped the central block in the United States to consolidate the local blocks. The offshore block is much wealthier than the local block. Currently, two-thirds of the dollar assets in the global market are held by the offshore block, while within the United States, meaning that when you combine the central and local blocks, there is only one-third. This large piece of pie was not previously addressed mainly due to the lack of account transparency, as it is too difficult to manage from a distance.
This DeFi tool is designed to clean up the offshore sector. We can see that Visa's CEO said the future market for stablecoins lies outside the United States. Tether's CEO Ardoino also mentioned that the capital efficiency onshore in the U.S. is already very high (about 90%), and even with the introduction of stablecoins, it can only rise to 95%, with very little marginal benefit. However, in the vast offshore market, financial efficiency is only 10-20%, and with the introduction of stablecoins, it can rise to 50%, an increase of 30-40%. In the blueprint of the U.S., future regulation of DeFi will be led by American institutions, while the corporate layer will incorporate obedient teams, similar to how stablecoins were integrated at the asset level this time. The infrastructure may also consider U.S. banks/exchanges etc. as qualified custodians and include them in the DeFi infrastructure. Asset types will also be classified based on clear legislation into stablecoins, digital commodities, and digital securities, with regulatory bodies based on existing U.S. regulatory agencies: OCC/CFTC/SEC.
Let's compare the offshore financial scenario of Cefi. The U.S. can only control two levels: technical facilities and user access, while other levels can't be shut down at all. Now the U.S. has quietly controlled most levels of Defi, making it perfectly suited to take over the offshore dollar market~ So everyone thinks Defi is decentralized finance.
However, the actual development in the future may be just the opposite. The future offshore financial sector may be absorbed by the US central sector, which will only make the dollar system more centralized. At that time, whether it is the management of on-chain assets or governance rules, they will be in the hands of the core players of the American empire. The so-called deregulation of DeFi is also about removing local foreign regulations, but certainly not removing US regulations.