The traditional finance system is currently on the surface system with which we are already familiar. The conventional financial system involves an extensive network of companies that carry out the investing, credit, debit, money markets, lending, insurance, and almost everything that has to do with money management. Unlike DeFi, the traditional finance systems are centralized and usually run by for-profit companies. The conventional financial systems all around the world are running on fiat today.
The extreme Quantitative Easing (QE) implemented by FED (and by BCE, BE, BJ and BNS) as a consequence of Covid19 (but started in 2010 to support post-subprime economy) created the perfect basis for a 2.0 version of the economic tragedy of 1923.