At the WOW (World of Web) Summit in Hong Kong, a group of experts in the field of digital regulation sheds light on the potential applications of regulated stablecoins, which have caught the attention of policymakers.
Stablecoins’ Current Growth Rate Will Ensure Sustainability – Digital Experts
During the panel, the experts stated that regulated stablecoins will continue to be utilized by 2030. They cited the stablecoin market’s current growth rate as a contributing factor to support their argument.
Alexandra Sasha, a prominent advocate for blockchain tech and innovation, who also serves as the Danish Parliament’s first deputy, acknowledged the crypto industry’s growth. Sasha asserted that regulated stablecoins would grow more in the coming years.
In addition, Sasha stated that there are still two distinct needs to be met within the digital era: those who prefer centralized payment methods and those who prefer decentralized options.
Furthermore, she doubted that anyone’s goal was to ban decentralized payments. However, Kelvin Lester Lee, the Philippines Securities Exchange Commission commissioner, expressed uncertainty about the widespread adoption of regulated stablecoins by 2030.
He stated that he is unsure if regulated crypto assets would have achieved significant growth by then. Douglas Arner, a professor specializing in the intersection of technology and finance regulation at the University of Hong Kong, concluded that the coming decade would see a contest between decentralized and centralized approaches.
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Arner further elaborated that while regulated stablecoins may still be present by 2030, they could potentially undergo significant changes. The professor noted that this competition between decentralized and centralized approaches would apply in the crypto ecosystem and the metaverse.
He predicts that when the decade ends, there will be a range of structures and applications. Furthermore, regulated stablecoins could emerge as the predominant monetary instrument within blockchain apps.
In another interview, Bobby Zagotta, the CEO of Bitstamp USA, noted that traditional banking systems are currently the primary method of customer deposits for most crypto exchanges. This over-reliance on traditional banking can expose crypto exchanges to various banking issues.
Furthermore, Zagotta and other crypto executives believe such overdependence could affect the crypto sector. As a result, the Bitstamp USA CEO and other executives within the crypto industry see stablecoins, which are cryptocurrencies pegged to fiat currencies or other assets, as a potential solution to the banking issues faced by crypto exchanges.
In a recent interview, Zagotta stated that he and his colleagues are currently exploring how stablecoins could be an alternative to the traditional banking system. He believes that stablecoins have the potential to revolutionize the crypto industry as they offer a new banking system that embraces the fundamental values and objectives of cryptocurrency.
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