There is increasing evidence that, as DeFi markets mature, the more correlation there is between the amount of capital in DeFi protocols and traditional monetary policies. DeFi challenges existing financial markets - offering the promise of lower costs, greater efficiencies and making financial markets more inclusive. Interest rates, money supply and regulations can impact DeFi as they do in today's financial sector.
The relationship between DeFi and monetary policy
The relationship between DeFi and monetary…
The relationship between DeFi and monetary policy
There is increasing evidence that, as DeFi markets mature, the more correlation there is between the amount of capital in DeFi protocols and traditional monetary policies. DeFi challenges existing financial markets - offering the promise of lower costs, greater efficiencies and making financial markets more inclusive. Interest rates, money supply and regulations can impact DeFi as they do in today's financial sector.