Here is our pick of the 3 most important Stablecoin news stories during the week.
Will stablecoins and CBDC’s help or hinder Crypto?
Some would argue that CBDCs will cancel out the need for cryptocurrencies like bitcoin. After all, how many different digital currencies do we really need?
This article argues that in fact, the opposite is true. The rise of CBDCs highlights the importance of decentralized cryptocurrencies that are relatively private and not controlled by any government.
In the meantime, athletes are arriving in Beijing and can try out the local and only operational at scale CBDC.
At the same time, this week we had an announcement that the British Government is funding further research by a company called Millicent.
And finally, as we look at the ashes of Facebook’s Libra/Diem it seems that it will like the mythical Phoenix arise again.
Silvergate Capital which owns the Bank that serves much of the Crypto industry said;
“We identified a need for a U.S. dollar-backed stablecoin that is regulated and highly scalable to further enable them to move money without barriers. It remains our intention to satisfy that need by launching a stablecoin in 2022, enabled by the assets we acquired today and our existing technology.”
So in summary, there is a continuing appetite for stablecoins and CBDC’s, but they are a very fundamentally different beast to Crypto. They are centralised and have tremendous ability to undermine our privacy. Up until now they the two have supported one another, but will we see a greater divide as things develop.
Alan Scott is an expert in the FX market and has been working in the domain of stablecoins for many years.
We have a self imposed constraint of 3 news stories per week because we serve busy senior Fintech leaders who just want succinct and important information.
New readers can read 3 free articles. To become a member with full access to all that Daily Fintech offers, the cost is just US$143 a year (= $0.39 per day or $2.75 per week). For less than one cup of coffee you get a week full of caffeine for the mind.