Joe Lubin claims DeFi is as safe as traditional finance, adding that bitcoin is in crisis
Analysis
Price Impact
HighJoe lubin, an ethereum co-founder and consensys ceo, claims 'blue chip' defi is as safe as traditional finance and anticipates a 'real breakthrough in 2026.' this strong endorsement from a prominent figure, coupled with a negative outlook on traditional banks and the contrasting 'existential problem' he points out for bitcoin, significantly boosts confidence in ethereum and its defi ecosystem.
Trustworthiness
HighAs a co-founder of ethereum and a key figure in the defi space through consensys, lubin's insights and predictions regarding the ecosystem he helped build carry substantial weight and are widely respected by the crypto community and institutions.
Price Direction
BullishLubin's assertion of defi's safety, its superiority to 'debasing' traditional banks, and a projected 'breakthrough' in 2026 creates a highly positive narrative for ethereum, which is the foundational blockchain for most 'blue chip' defi protocols. this should attract further capital, development, and user adoption, driving demand for eth.
Time Effect
ShortLubin explicitly points to '2026' as the year for a 'real breakthrough' in defi, indicating a near-term catalyst for significant growth and adoption. while his bitcoin comments are long-term, the defi comments are more immediate.
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Article Content:
Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Joe Lubin claims DeFi is as safe as traditional finance, adding that bitcoin is in crisis During an interview at Consensus Hong Kong 2026, Joseph Lubin argued that "blue chip" decentralized finance has reached parity with traditional banking. By Oliver Knight | Edited by Nikhilesh De Feb 11, 2026, 11:17 a.m. Make us preferred on Google Joe Lubin (David Paul Morris/Consensus) What to know : Joe Lubin claims "blue chip" DeFi protocols are now as safe as traditional finance, arguing that global banks are "debasing" and becoming less secure. While bullish on Ethereum, Lubin expressed concern over Bitcoin’s "existential problem" regarding "Q Day" — the point at which quantum computers could potentially crack current encryption. Consensys founder and CEO Joe Lubin claimed that decentralized finance (DeFi) is as safe as traditional finance during an interview at Consensus Hong Kong 2026. Lubin told CNBC reporter Elaine Yu that "blue chip DeFi is very safe, [but] banks are debasing across the world and growing less safe. If you have situations like in the GFC [global financial crisis] where you see haircuts in Greece for example. People lose 25% of their purchasing power." STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . "DeFi is roughly as safe as traditional finance," he said before adding that in "2026 people are going to see a real break through in terms or DeFi." Lubin had a contrasting view on bitcoin, alluding to "Q Day" as the day when "encryption can be challenged by quantum computers. "Bitcoin potentially has an existential problem, it's reasonable to worry about that," he added. "I personally think it's a long way off but I also think that AI is magic, and AI is going to supercharge many scientific and technological pursuits. Ethereum is going to be in great shape very soon, and the rest of the world is going to be a kind of Y2k situation," he said. Consensus Hong Kong 2026 Joe Lubin More For You DeFi is not really decentralized, it is unavoidably centralized By Olivier Acuna | Edited by Oliver Knight 18 minutes ago Rules are required to ensure DeFi projects grow and mature, which means they need layers of centralization before becoming truly decentralized. . What to know : A panel at Consensus Hong Kong 2026 argued that most DeFi protocols must pass through a pragmatic, temporarily centralized “incubation phase” before they can safely decentralize. Speakers contrasted Ethereum’s base layer as a neutral “government” with layer 2 founders acting like growth-focused businesses that use admin keys and guardrails to protect young protocols from early exploits. Industry leaders said institutional adoption will require professional, rule-based infrastructure that sacrifices some early-stage decentralization so protocols can mature and withstand scrutiny from global financial markets. Read full story Latest Crypto News Regulation, derivatives helping drive TradFi institutions into crypto, panellists say 18 minutes ago DeFi is not really decentralized, it is unavoidably centralized 18 minutes ago Robinhood believes yields should be passed on to the customer, criticizes traditional finance 19 minutes ago Tokenization still at start of hype cycle, but needs more use cases, specialists say 56 minutes ago Hong Kong ready to issue first stablecoin licenses in March, Financial Secretary says 1 hour ago Arkham Intelligence said to be shutting crypto trading platform as usage fails to sparkle 1 hour ago Top Stories Crypto's banker adversaries didn't want to deal in latest White House meeting on bill 12 hours ago SkyBridge's Scaramucci is buying the bitcoin dip, calls Trump a crypto president 8 hours ago Hong Kong working to allow perpetual contracts, chief regulator says 6 hours ago Citadel Securities backs LayerZero as it unveils ‘Zero’ blockchain for global markets 13 hours ago Crypto PAC Fairshake leaps into first midterm Senate race with $5 million in Alabama 11 hours ago Crypto exchange Kraken fires chief financial officer ahead of long-awaited IPO 19 hours ago