Can CDBCs coexist with stablecoins?
Sources:
Experts believe that Central Bank Digital Currencies (CBDCs) can coexist with stablecoins under certain conditions.
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Integration and Similarities: It's suggested that for CBDCs to succeed, they should have properties similar to stablecoins, such as transparency, access, and composability. The concept of synthetic CBDCs, where stablecoins backed by central bank reserves can operate across various networks, has been proposed. This would allow CBDCs to benefit from the innovations brought by stablecoins 1.
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Compatibility and Regulation: It is argued that stablecoins and CBDCs can complement each other. Stablecoins backed by CBDCs could provide an interoperable layer while leveraging the security and trust of central bank money. This system ensures that both forms serve different purposes but operate within a coherent financial ecosystem 2.
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Immediate Needs and Future Planning: Experts emphasize the need for private stablecoins that are fiat-backed, regulated, and secure. They argue that waiting for CBDCs should not delay the implementation of stablecoins due to their pressing relevance in the current financial environment. Thus, stablecoins can address immediate market needs while CBDCs are developed and introduced 3.
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Security and Stability: The coexistence of CBDCs and stablecoins requires robust regulatory frameworks to ensure that both forms of digital currency maintain financial stability and security. Proper supervision and integration with existing financial infrastructures are necessary to support the coexistence effectively 4.
Overall, stablecoins and CBDCs can coexist, with stablecoins potentially backing CBDCs and both being integrated into a regulated financial infrastructure that supports innovation and stability.
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