Decentralised Exchanges (DEX) are playing a significant role in the financial services industry, presenting a fundamental shift in the way we conduct transactions and manage assets.

The recent collapse of cryptocurrency exchange FTX, resulting in the loss of at least $1 billion of customers’ funds, has brought the benefits of decentralised exchanges into the spotlight.

When putting crypto into a DEX, users maintain custody of their assets, making trades directly from their own wallet, as the exchanges use smart contracts based on blockchain technology.

The Gillmore Centre provided a consultation document earlier in the year. Do read the initial response on a previous post.Link opens in a new window

Read further to see the treasury response and the initial report.

We welcome HM Treasury and the Bank of England’s consultation on a possible digital pound, and the opportunity to respond.