Stablecoins must be programmable to counter CBDCs
Decentralization enables programmability — and that allows stablecoins to wield a key advantage over central bank digital currencies. When it comes to providing stable value, stablecoins and central bank digital currencies (CBDCs) appear to serve two sides of the same proverbial coin. Crypto stable assets, however, can provide entirely different use cases — and CBDCs simply cannot compete. The key is programmability — smart contracts that automate and add new features to money. Programmability allows for asset backing and decentralization that is not possible under current CBDC designs. Developers should be taking advantage of the programmable opportunities that stable assets offer rather than trying to compete with CBDCs. Stable-asset issuers articulate that they can make the current monetary system better — primarily in three ways. First, stable assets can help reduce the costs of traditional financial activity, such as decentralized borrowing/lending via decentralized finance (DeF...