Does the concept of Stablecoins advance or hinder Crypto Adoption?
Here is our pick of the 3 most important Domain news stories during the Period:
Welcome to my first review of the weekly news on Stablecoins. I chose to focus on this subject because I firmly believe they will be the gateway drug to Crypto. I love Crypto, the Tech, the distributed nature, the possibilities but unfortunately the mainstream is not really that into it.
Now, like a scorned Romeo we can all postulate as to why, the Tech is not mature, the use cases not properly explored or people just don’t get it, yet. But, to me the gap between our current “real” world and the “virtual” Crypto is too large for the mainstream and they will need a bridge and a nudge before they will put down whatever they are doing for just a second and join us, the early adopters.
So Stable coins can be that bridge, enabling us at our own pace to stroll from our local Fiat currency into a new world and then back again as and when it suits us. Suddenly, Crypto is not such a binary leap for the brave and adventurous at heart, but soon will also be a safe play for those of a gentler nature.
First, let’s briefly explore the topic of Central Bank Digital Currencies (CBDC’s). Besides the Fed (the big Daddy of Central Banks) there is a lot going on here. The ECB, Bank of England (BoE) and of course the Peoples Bank of China (PBoC) all have active projects that will deliver some sort of MVP by the end of the year. However, maybe the most interesting is the BIS (sometimes referred to as the Central Bank for Central Banks). For those of you who want to understand more about the topic of CDBC’s, I suggest this link to a recent BIS paper as a good starting point. Impending arrival – a sequel to the survey on central bank digital currency
Three articles that caught our eye.
- This week Banque De France (French Central Bank) produced an Request For Proposal (RFP) for their project, check it out at this Finextra article which also includes a link to the actual RFP. Banque de France plans CBDC experiments
- BoE held a webinar on the current state of their thinking and asked for feedback, you can catch up with a recording of the webinar and other related documents here Central Bank Digital Currency: opportunities, challenges and design
- And finally, even in these bleak times according to this Reuters report from Deutsche Bank Analyst Mike Dolan the pandemic may actually hasten adoption of CDBC’s RPT-COLUMN-Pandemic shock may hasten central bank digital cash: Mike Dolan
Hopefully, you have found something interesting, new and of value in this weekly summary. In the meantime, stay safe and sane!
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