Experts Discuss Future of Stablecoins and CBDCs at Dubai Innovation Summit
Summary:
In a panel discussion at the Future Innovation Summit in Dubai, experts explored the potential coexistence of Central Bank Digital Currencies (CBDCs) and stablecoins. The panelists debated the merits of decentralized finance, critiqued government-controlled CBDCs, discussed the potential risks associated with both stablecoins and CBDCs, and envisioned the possibility of interoperability between the two digital assets in the future.
The recent Future Innovation Summit in Dubai saw a Cointelegraph-led panel discussion on "Stablecoins, Central Bank Digital Currencies and Cross-Border Payments". Panelists discussed the possibility of stablecoins and CBDCs coexisting as well as the manner in which this could be achieved. Among those contributing to the conversation were Jorge Carrasco of FTI Consulting, Luna Media Corp's Nikita Sachdev, Eetu Kuneinen of DGC, and Citibank's Jagadeshwaran Kothandapani.
In exploring the topics, a consensus emerged that stablecoins and CBDCs could coexist. Kuneinen expressed the view that government-issued CBDCs would inherently be centralized, despite them possibly being built on blockchain. He raised concerns about the potential dangers of such government control, like the possible freezing of political rivals' assets.
Kuneinen proposed a stablecoin framework not owned by a single private company as a preferable alternative. This framework would allow anyone with assets and technological access to issue the currency, leading potentially to multiple banks issuing the same regulated stablecoin. Sachdev disagreed somewhat, arguing that governments already have the means to freeze digital assets. She suggested that the use of blockchain by governments for CBDCs could be a stepping stone to a fully decentralized, Web3 status.
Despite seeming to defend CBDCs, Sachdev clarified that she isn't yet advocating for either stablecoins or CBDCs, due to events such as the Terra USD (UST) collapse exposing potential risks. However, Carrasco expressed his belief that progressing technologies are bound to encounter hurdles, and that it's normal to experience failures and learning curves. He also proposed that CBDCs and stablecoins could even become interoperable in the future.
Carrasco envisioned an international body overseeing CBDCs and ensuring interoperability between them, while protecting the people from government interference. Kothandapani echoed his fellow panelists, adding that ultimately companies or users would be the ones to choose the best solution for them. He concluded that both CBDCs and stablecoins could coexist, provided that the latter remain stable and decentralized.
Published At
10/13/2023 10:32:53 AM
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