In a recent press op, the Vice-Chair of CBDC said that the organization can see a future where it exists with the stablecoins. Lael Brainard’s comments were part of a testimony that was released in advance for her appearance in the House Financial Services Committee.
She expanded on the point by saying that the stablecoins existing with commercial banks can coexist, just like banks and cash exist now. Stablecoins are a part of a decentralized finance trend that essentially works like a global bank. Since there are little to no regulations, transactions can happen quickly anywhere around the world.
And with crypto being endorsed by Tech Moguls Like Elon Musk, it has seen a meteoric rise in adoption. But due to its unregulated nature, the Vice-Chair said that there needs to be some type of regulation going on. This comes after USDT and LUNA collapsed in recent weeks and lost almost all of their value.
She also added that regulations are necessary because there is a risk if they do not act too. CBDC has been working on making international transactions much more accessible and easier than they are.
But the CBDC have made it clear that they won’t be going ahead with their plans without support from the Congress and the President himself. With most of the countries in the west supporting and building upon crypto there is a very good chance that the project will be greenlighted.
This gives crypto enthusiasts hope that DeFi is here to stay.