This is not political content:
https://www.youtube.com/watch?v=rpNnTuK5JJU
Fully programmable tokenised "currency" requires a Digital ID. Programmable currency allows any arbitrary policy framework to be applied which is what ex-BIS CEO, Agustin Carstens, is talking about in the above announcement.
Official Stablecoins like RLUSD available on XRPL and Ethereum blockchain are designed for full programmability and enforcement through smart contracts (typically deployed by bank such as a central bank and a compliant commercial financial institution).
DeFi refers more to the technical distribution of smart contracts aka policy applications running across all parts of the digital platform such as on phones, Point-of-Sale systems, across data centers and in wallets, etc.
Smart contracts facilitate reliable transactions and agreements between parties, eliminating the need for traditional intermediaries like central authorities and legal systems (courts), or external enforcement mechanisms (eliminating due process as occured to the Canadian Truckers when they were debanked without any legal process or court involvement). However, policy frameworks themselves will be enforced centrally by stakeholders such as governments, central banks and compliant institutions. This is what Agustin Carstens is referring to. Digital ID is required to enforce policy across individuals and entities.