The trend towards decentralization in all aspects is imminent. Thus, even traditional organizations are tapping into the market of decentralized finance. Jerome Powell, the chair of Federal Reserve, announced that they would be collaborating with the BIS to explore Defi technologies.
BIS is the Bank for International Settlements. Federal Reserve will be partnering with its innovation hub. With all the popularity that crypto is gaining, it was inevitable that traditional financial organizations tap into its market.
The rollout of CBDC
This partnership will mainly involve the rollout of CBDC or central bank digital currency. With rising support for decentralization and freedom on the web, it was inevitable that traditional organizations tap into the crypto market. Although, the rollout of this currency would probably defeat the purpose of crypto as this currency will be rolled out by central banks.
Jerome Powell’s remarks about a major digital revolution have made a major impact on the market. The innovation hub will be led by Per von Zelovitz. If traditional organizations such as banks recognize the power of decentralized currencies and Defi, then it’s inevitable that the future will be largely virtual. This is a piece of positive news for crypto enthusiasts as well as those who are looking forward to a new decentralized version of the web.
According to a recent survey, it was found that almost 86 percent of the banks are exploring the option of CBDCs. Thus, one can expect banks to move towards digital currencies anytime in the future