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CBDCs can interact with decentralized finance (DeFi) and bring more stability to the sector. This opinion was expressed by member of the board of the Swiss National Bank (SNB) Thomas Moser in an interview with Cointelegraph.
According to him, centralization and decentralization in digital currencies “can work together.” As an example, he cited USDT and USDC stablecoins.
“So ‘something centralized’ has already helped DeFi a lot,” Moser said.
However, the central bank’s digital currency outperforms stablecoins because it “does not entail counterparty risk,” the SNB spokesman added. He noted that cryptocurrencies like Bitcoin and Ethereum are not suitable to support the sustainable growth of DeFi due to volatility.
“Algorithmic stablecoins also involve no counterparty risk, but so far we have not seen successful [проектов]. A CBDC can provide more stability and less risk,” Moser said.
What is decentralized finance (DeFi)?
Earlier, the chairmen of the leading central banks called it justified to strengthen the regulation of the decentralized finance sector against the backdrop of its development.
Recall that in August, the head of the Central Bank of Finland, Olli Rehn, criticized cryptocurrencies and said that CBDCs are immune to volatility and can be unconditionally trusted.
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