FED Researchers Have Published A Crypto Paper!

The US Federal Reserve (FED) A research team published a study on cryptocurrencies last week. In particular, the research decentralized finance (DeFi) and the stability of cryptocurrencies.

The report was first brought to the fore by Lael Brainard. “strict control of cryptocurrencies” regulations were referenced.

In the report, cryptocurrencies It was stated that it is still not regulated, so there are question marks in the minds of liquidity, capital and transparency.

“The cryptocurrency ecosystem has the perfect backdrop for financial deficits to occur. In addition, there is no clear collateral or a responsible person behind cryptocurrencies. Cryptocurrencies are now also linked to the traditional financial industry. A stability problem in crypto assets will negatively affect all financial areas.”

Researchers are quite uncomfortable with the connection of cryptocurrencies with traditional finance. They think that cryptocurrencies will further increase financial stability risks in the future.

The Future of the DeFi Industry

Fed researchers have opened a separate parenthesis to the decentralized finance (DeFi) sector. The report “Decentralized Finance (DeFi): Transformative Potential and Associated Risks” provided a general commentary on the DeFi industry.

Researchers briefly mentioned the DeFi industry as follows:

“Finance platforms built on public, decentralized blockchains emerged with the development of cryptocurrencies. Financial platforms, where there is no news of the states or even a rule, are a big problem for stability.”

As cryptocurrencies continue to evolve, states are now seriously planning to regulate this area. However, it is still a big question mark how to regulate this area, which is completely independent of states, institutions and censors.

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