Peter Dittus, chief economist at SFB Technologies, said at a panel discussion at the Unitize Digital Conference whether he saw a place for privately issued stable coins.
“I don’t see a big future for them”said Dittus on stable coins broadcast live on Cointelegraph on the panel from June 7th.
There are two types of stable coins
Stable coins come in two categories: those that are privately spent and the CBDCaccording to Dittus. Those issued by governments or CBDCs essentially convert cash to digital, and each currency represents to some extent the value of the local currency.
Privately issued stable coins often hold the value of various national currencies, although private companies manage these assets, not governments. Tether’s USDT is a vivid example of a private stable coin.
“If you issue a stable coin, I’m not sure what it’s about,” said Dittus. “It may be an Internet of Things issue, some sort of small payment thing, I can see that, but what else would you use it for?” He added, having regard to the existence of all other available digital payment forms. PayPal and Venmo are two examples of this type.
“What is the unique selling point for a stable coin issued by a private consortium?” Dittus added. However, He mentioned the potential of native assets from certain platforms such as Facebook or Telegram, which use the base of the large number of customers of their companies.
Dittus sees value in CBDCs
Although he was not enthusiastic about privately issued stable coins, Dittus sees potential for CDBC. “These obviously have significant potential because they have all the support, legal and economic power of the country that supports them,” he said.
“From the perspective of someone who owns it, it is a credit-free asset,” added.
Dittus also mentioned his interest in a different type of stable coin than in nations torn apart by inflation. like Argentina, which would base its value on assets other than precious metals or commodities rather than currency.
“If you have a stable coin tied to the bolivar, who would care?”Dittus said, referring to Venezuela’s paper money. The country where inflation has risen in recent years, reaching 10,000,000% in 2019.