The co-founder of the Decred project believes that state-owned cryptocurrencies will not affect public crypto assets, but may affect stablecoins.
In recent years, central banks in various countries have been actively exploring the possibility of issuing their own digital currencies. In China, the digital yuan is already being tested in ATMs, and photos of a hardware wallet for it have appeared on the Internet. In the fall, the Central Bank of the Bahamas launched the Sand Dollar, becoming one of the first banks to introduce its own digital currency. Some countries, such as the United States, are taking a more cautious approach to this issue.
However, the head of Decred believes that even if most countries launch state-owned stablecoins in the near future, cryptocurrencies will still have their advantages. Jake Yocom-Piatt explained that bitcoin and other cryptocurrencies are more open and fair systems than conventional money. Even with some of the functions of cryptocurrencies, the Central Bank’s digital currencies will not be able to compete with them in terms of fairness and equality.
Crypto assets are not linked to fiat currencies, they are managed not by the state, but by software code. In addition, territorial borders can not become an obstacle to conducting cryptocurrency transactions. This is the key difference between crypto assets and state-owned digital currencies.
Cryptocurrencies are issued on a pre-determined schedule, so they will not be affected by the digital currencies of central banks. These assets are only a digital version of fiat currencies, but depending on their specifications, stablecoins may not stand up to competition. On the other hand, there are too many restrictions imposed on the digital currencies of the Central Bank, so stab coins will be able to compete with them in terms of flexibility of circulation.
Last week, investment bank Macquarie said that if private cryptocurrencies are too firmly embedded in the sphere of payments, then public digital currencies can lag far behind them in development.