#FedHODL
The Federal Reserve has been analyzing how cryptocurrencies and decentralized finance (DeFi) could transform the financial system in the coming years. Their studies present two scenarios: one where blockchain technology integrates with traditional markets, facilitating connections with real assets and improving financial efficiency, and another where cryptos evolve in a parallel ecosystem, offering independent services. Additionally, they evaluate the possibility of a central bank digital currency (CBDC), which would help reduce volatility in crypto markets. However, the lack of regulation in DeFi poses a significant challenge, forcing the Fed to constantly monitor its impact with extreme caution and attention.
