DEA Executive Director Tamara Ferreira Schmidt: The integration of TradFi and DeFi is not only possible but inevitable

Digital Euro Conference 2025 concluded successfully on March 27 in Frankfurt, the "Heart of European Finance." Starlabs Consulting attended this grand event as an official partner. During the conference, the impressive presentation by Tamara Ferreira Schmidt, Executive Director of the Digital Euro Association (DEA), left a deep impression.

Left: Tamara Ferreira Schmidt

Schmidt's background is quite interesting: she has a background in physics and later entered the financial markets, with over 15 years of expertise in financial engineering, capital markets, and derivatives. She is a recipient of the prestigious German Chancellor Fellowship awarded by the Alexander von Humboldt Foundation and has conducted in-depth research on the role of Alternative Financing in shaping the early startup ecosystems in Brazil and Germany. She is also a highly regarded consultant and content creator, focusing on investment, startups, innovation, digital currencies, and blockchain, having spoken at several internationally recognized events, including the Brazil-Germany Fintech eTour, TEDx KanzlerPark, Web 3.0 Disruptors Week, Crypto Assets Conference, Digital Euro Conference, Brussels Blockchain Week, CBDC Conference, and Nordic Blockchain Conference.

In this issue of "Disruptors Unplugged," Starlabs Consulting interviewed Ms. Schmidt, asking her to delve into the relationship between Traditional Finance (TradFi) and Decentralized Finance (DeFi), tokenization and alternative financing, as well as the connections between CBDC, traditional currencies, cryptocurrencies, and stablecoins from the perspective of a practitioner, researcher, and rule-maker. She also provided many constructive suggestions on how Web3 companies can enter Europe and emerging markets, and how women can better participate in the digital asset space.

Highlights

• Alternative Financing aims to unlock capital outside the traditional banking environment. Tokenization achieves this better through ownership decentralization, disintermediation, and global 24/7 liquidity.

• CBDC presents a unique value proposition by combining the stability of central bank money with the programmability and efficiency of digital assets. It is not intended to replace existing systems but to enhance the resilience, inclusiveness, and sovereignty of the monetary system in the digital age.

• The EU views cryptocurrencies not only as a new asset class but is also focused on how tokenization and distributed ledger technology can reshape traditional financial infrastructure.

• Emerging markets present some of the biggest opportunities for digital assets, not because they are lagging in development, but because they have the potential to completely bypass traditional systems.

• In the Web3 and digital finance space, women can truly shine— the key is to combine curiosity with strategic vision. By enhancing technical literacy, mastering regulatory frameworks, and effectively leveraging networks, women can drive meaningful change in this rapidly evolving industry.

Here are some highlights from this issue of "Disruptors Unplugged."

Starlabs: Your career experience is quite rich. When did you start getting involved in the blockchain space? What sparked your interest in blockchain and digital assets?

Schmidt: My initial interest in the blockchain industry dates back to 2016 when I was pursuing my master's degree, researching how blockchain technology could be applied to the Brazilian stock exchange B3 (Brasil Bolsa Balcão). At that time, I was working at B3 and was captivated by the immense potential of this technology—it could reshape the financial industry, especially the infrastructure provided by exchanges, such as trading, custody, and depository services. At that moment, I realized that blockchain was no longer just a buzzword but something that could genuinely change financial markets.

Starlabs: How do you view the relationship between TradFi and DeFi? Do you think they can integrate and complement each other?

Schmidt: I believe the integration of TradFi and DeFi is not only possible but inevitable. This is not because the two are inherently aligned, but because user expectations are rapidly evolving. Today, people want financial services to be faster, cheaper, and more inclusive. Neither TradFi nor DeFi alone can fully meet these demands. TradFi provides scale, compliance, and institutional trust, while DeFi brings speed, composability, and programmability. True innovation lies in combining these advantages, such as integrating tokenized assets with legal clarity, incorporating smart contracts into financial infrastructure, and providing regulated access to decentralized markets.

DeFi is not about replacing TradFi but simplifying processes and broadening access channels, even covering non-financial assets like intellectual property or digital art.

It addresses long-standing challenges like counterparty risk through tools like automation, decentralization, and transparency. This does not mean completely eliminating third parties but redefining their roles. For example, banks could transform into access points for DeFi protocols, just as they connect to centralized exchanges today.

For the tokenization of traditional assets to succeed in a decentralized environment, collaboration is essential. We need regulatory bridges, universal standards, and robust technological integration. The future of finance will not be a binary choice but will involve building a cohesive, interoperable system where innovation and trust support each other.

Starlabs: In your career and research, a term that frequently comes up is "Alternative Financing." Can you explain what it refers to? Is tokenization an ideal Alternative Financing solution?

Schmidt: Alternative Financing refers to unlocking capital outside the traditional banking environment. It includes crowdfunding, peer-to-peer lending, accounts receivable financing, and increasingly popular tokenization models. Its goal is to make financial services more inclusive, especially for groups that are underserved or overlooked by banks, such as SMEs, creatives, or early-stage startups. These groups have long been excluded from traditional credit systems.

In my research, I explored how alternative financing has developed in response to the inefficiencies of traditional capital markets. Digital platforms connect capital with opportunities in new ways. Tokenization achieves this better through ownership decentralization, disintermediation, and global 24/7 liquidity. Imagine a small business raising funds through a tokenized revenue-sharing agreement, or a community solar project being securitized and traded globally in micro-shares, all managed by smart contracts.

Of course, this is still an emerging field. Technological advancements are rapid, but regulation and infrastructure have not kept pace. We need a clear, legally sound, and inclusive regulatory framework. This can not only improve how finance operates but also broaden access to financial participation.

Starlabs: Tell us about the DEA, its mission, what it primarily does, and its future vision.

DEA Official Website

Schmidt: The mission of the Digital Euro Association (DEA) is to shape the future of digital currency by connecting policy, technology, and society. While the digital euro is our core focus, our work extends far beyond that. We explore the entire digital currency ecosystem, including central bank digital currencies (CBDCs), stablecoins, tokenized deposits, and other types of digital currencies.

We bring together a wide range of stakeholders, from central banks and regulators to fintech innovators, academics, and civil society members. Our goal is to facilitate dialogue, conduct research, and support effective decision-making. Through working groups, publications, events, and strategic partnerships, we are committed to helping Europe become a global leader in digital currency innovation, grounded in transparency, inclusiveness, and technological sovereignty.

Ultimately, our vision is to ensure that the future currency of Europe is both forward-looking and aligned with democratic values. This means building a new infrastructure centered on people, privacy, and trust.

Starlabs: What unique utilities do you think CBDC or the digital euro has that traditional currencies (like the euro) and cryptocurrencies or stablecoins do not possess?

Schmidt: CBDC presents a unique value proposition by combining the stability of central bank money with the programmability and efficiency of digital assets:

• Unlike stablecoins, it does not have issuer risk;

• Unlike cash, it supports automated operations, can be used offline, and integrates easily with digital platforms;

• Unlike cryptocurrencies, it is based on public trust and backed by monetary policy.

The uniqueness of CBDC lies in its systemic design. Its development considers three core elements of payment systems: payment instruments, infrastructure, and payment schemes.

Most electronic money systems primarily focus on payment instruments, such as prepaid cards or digital wallets like PayPal and Revolut. In contrast, fast payment systems emphasize infrastructure and how to connect private participants. CBDC aims to unify all these elements into a complete, state-supported system.

This means that CBDC is not just a digital version of cash. If privacy, offline usability, and seamless interoperability are prioritized during development, it can become the foundational layer of public digital currency. CBDC is not intended to replace existing systems but to enhance the resilience, inclusiveness, and sovereignty of the monetary system in the digital age.

Starlabs: How do you view China's CBDC? The Trump administration opposed the U.S. launching a CBDC; what are your thoughts on this? How does the digital euro differ from existing CBDC designs?

Schmidt: China's pioneering efforts demonstrate the potential for scalability while also revealing how political design can influence outcomes, especially regarding privacy. The hesitation in the U.S. stems from ideological resistance and legitimate concerns about centralized control. The digital euro will be an attempt for Europe to seek a middle ground that protects individual freedoms while maintaining financial stability and avoiding excessive state power intervention.

Starlabs: Stablecoins are gaining increasing attention globally. How do you view the future of stablecoins in Europe, especially regarding market acceptance and regulatory policies?

Schmidt: The EU's Markets in Crypto-Assets Regulation (MiCAR) lays the groundwork for establishing a more unified and predictable environment. Stablecoin issuers need to meet clear standards in reserve support, governance, transparency, and risk management. This brings much-needed legal certainty to the market, which is a welcome advancement, as well-regulated stablecoins can provide real value in the financial system.

Euro-denominated stablecoins are likely to become key tools in areas such as B2B payments, remittances, DeFi, and digital markets. They combine the speed of cryptocurrencies with the price stability of fiat currencies, making them highly attractive to businesses and consumers.

However, success will not belong solely to the most technologically advanced projects but to those that can combine innovation with compliance, gain regulatory trust, and smoothly integrate with existing financial infrastructure. In a heavily regulated market like the EU, obtaining regulatory approval is no longer a barrier but a competitive advantage.

Starlabs: Please briefly introduce Europe's regulatory attitude and trends regarding digital currencies and the crypto industry.

Schmidt: Europe has adopted a clear "regulatory-first" strategy. This approach may frustrate fast-developing innovators, but it ultimately lays a solid and reliable foundation. The EU aims to create a safe, consistent, and innovation-friendly environment for digital assets, and MiCAR is a significant milestone in achieving this goal. MiCAR provides the necessary legal clarity, covering everything from asset-backed stablecoins to crypto asset service providers, and establishes a unified regulatory framework for all 27 member states.

But MiCAR is just the beginning. The distributed ledger technology (DLT) pilot program is another key development, allowing market participants to test tokenized securities in a regulated sandbox. This indicates that the EU not only views cryptocurrencies as a new asset class but is also focused on how tokenization and distributed ledger technology can reshape traditional financial infrastructure.

Looking ahead, we can expect future regulations to cover areas such as tokenized deposits, decentralized finance, and wholesale CBDCs. A broader trend is that regulation will be activity-based rather than targeting specific entities, maintaining technological neutrality rather than overly specific interventions, and striving for cross-jurisdictional coordination rather than fragmentation.

While this approach may seem slow, it is building long-term legal certainty and institutional stability to support the in-depth development of the digital asset industry.

Starlabs: If a Web3 company wants to expand its market and customer base in Europe, what practical advice would you give them?

Schmidt: First, understand the regulatory environment. With the implementation of MiCAR, Europe is moving towards a unified framework, which requires businesses to take compliance seriously. Companies need to assess the legal adaptability of their products and make necessary adjustments.

Localization is also important. This is not just about language or currency but understanding how European market users view trust, money, and data. Collaborating with local experts or companies can facilitate smoother regulatory integration and market positioning.

Additionally, it is crucial to establish connections with customers, regulators, and other participants in the ecosystem early on. Organizations like the DEA can help bridge this gap, connecting innovators with policymakers and researchers. Although the European market is complex, opportunities are real for those willing to invest in foundational work.

Starlabs: You are also familiar with Brazil's financial market. What development opportunities do you see for digital assets in emerging markets? Please also provide practical advice for Web3 entrepreneurs planning to acquire customers in these markets (such as South America, Africa, the Middle East, and Asia).

Schmidt: Emerging markets present some of the biggest opportunities for digital assets, not because they are lagging in development, but because they have the potential to completely bypass traditional systems. We have already seen this in mobile banking, with countries like Kenya and Brazil surpassing many developed economies in mobile banking adoption and innovation. The same trend is unfolding in the digital asset and decentralized finance space.

For example, the launch of Pix in Brazil has revolutionized real-time payments, and through the central bank's digital real project (Drex), Brazil is exploring how tokenized deposits and programmable money can reshape its financial infrastructure. These are not just incremental improvements but foundational transformations.

That said, Web3 entrepreneurs should be cautious about adopting a "one-size-fits-all" approach. The challenges in these markets are real, ranging from currency volatility and limited credit channels to underdeveloped capital markets and high remittance costs. However, these challenges are often highly localized. The key to success is to listen first and then act. The focus should be on solving local, real-world problems rather than prioritizing the elegance of technology.

Working closely with local partners, whether fintech startups, community organizations, or regulatory bodies, can open doors that external solutions often cannot. This is not just about exporting technology but nurturing financial resilience and autonomy in a way that reflects local realities.

Starlabs: We see many women achieving remarkable success in the Web3 space, like yourself. What advice do you have for other women looking to enter the fintech or digital asset space? Do you support them in embarking on this adventurous journey?

Schmidt: Yes, I would encourage them, but with a realistic and clear perspective on the industry. The fintech and digital asset space is full of potential, but it is also complex, volatile, and challenging. A technical background can be helpful, but it is not essential. My own career began in physics, then transitioned to traditional finance, and eventually expanded into blockchain and decentralized finance. This interdisciplinary path has allowed me to bridge the technical and regulatory aspects of the industry when needed.

For women considering entering this field, I suggest focusing on a few core points: build a solid understanding of key technologies, stay informed about the ever-changing regulatory landscape, and identify where their specific skills can create value. It’s not about mastering all knowledge at once but learning strategically and positioning themselves effectively.

I also recommend establishing a professional network early on. This is not just to increase visibility but to create a space for exchanging ideas, sharing experiences, and receiving genuine feedback. This kind of interaction is often crucial for personal and professional growth.

Although the industry still has shortcomings in gender balance, especially in leadership roles, there is ample space to make meaningful contributions, particularly for those with stability, critical thinking, and the ability to challenge existing assumptions. A solid analytical foundation and a deep understanding of how financial systems operate are highly valuable in every corner of this field.