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When it comes to delivering steady value, stablecoins and central bank digital currencies (CBDCs) serve various goals. Stablecoins, which are programmable and decentralized, provide distinct use cases that CBDCs cannot match. Rather than competing with CBDCs, developers should focus on taking advantage of the programmable opportunities that solid assets provide. 
In three ways, stable assets can improve the current monetary system. For starters, they can lower the costs of classic financial transactions like decentralized borrowing/lending and remittances. Second, citizens in hyperinflationary countries can employ secure assets to protect their income and stabilize payments. Finally, stablecoins can be used for more private payments. 
Most stable assets today are backed by traditional finance, with their reserves consisting solely of financial assets. Stable assets, on the other hand, can include assets with more immediate utility, such as unique real-world assets. This results in extra features that support real-world use cases of the stable asset, which CBDCs cannot achieve. 
Communities could tokenize other real-world assets in their area to establish community stablecoins that connect their assets to the larger financial system. Stable assets can do considerably more than currency today by incorporating other real-world assets. 
Decentralization promotes programmability and offers stable-asset holders additional authority. This can promote openness in issuance and management, as well as the development of additional features based on user needs. 
A lack of regulatory certainty has been a major issue for reliable asset issuance in the United States. With a potential moratorium, new stable asset issuing may become even more difficult in the future. As a result, innovation may have to take place elsewhere. 
Stable assets are not intended to compete with CBDCs or even traditional payment systems, but rather to serve a completely distinct purpose. Asset-backed financing and decentralization are two critical cornerstones for focusing on this task. 
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The post <a rel="nofollow" href="https://bitcoinworld.co.in/stablecoins-must-be-programmable-to-counter-cbdcs/">Stablecoins Must be Programmable to Counter CBDCs</a> appeared first on <a rel="nofollow" href="https://bitcoinworld.co.in">BitcoinWorld</a>.

Stablecoins Must be Programmable to Counter CBDCs

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