ECB: DeFi rates depend on monetary policy, but with a lag
- —From 2021 to 2026, DeFi rates averaged 1 percentage point above the Fed rate
- —In the short term, DeFi rates can fall when the Fed rate rises due to the unwinding of leveraged positions
- —The ECB invited e-commerce and m-commerce merchants to a 12-month digital euro pilot
- —The pilot starts in the second half of 2027, with a possible CBDC issuance in 2029
Why it matters: DeFi is increasingly tied to traditional finance, but monetary policy transmission into it is slower and less predictable, which matters for assessing yield risks in stablecoin protocols.
Source: CoinGeek