Many types of so-called stablecoins have tried to meet the market’s demands for digital money, only to go wobbly. Instead, the future of online payments lies in commercial bank deposit tokens, which can and should be issued within the current two-tiered monetary system and work in tandem with central bank digital currencies.
BASEL – Stablecoins have been under the spotlight since last year’s implosion of the Terra ecosystem triggered significant ripple effects in the crypto market. While most would agree that stablecoins like TerraUSD, managed by an algorithm that linked its value to another cryptocurrency, fail to deliver on the “stable” part of their name, there is less consensus on coins backed by real-world currencies or assets.
BASEL – Stablecoins have been under the spotlight since last year’s implosion of the Terra ecosystem triggered significant ripple effects in the crypto market. While most would agree that stablecoins like TerraUSD, managed by an algorithm that linked its value to another cryptocurrency, fail to deliver on the “stable” part of their name, there is less consensus on coins backed by real-world currencies or assets.