In an article written by a group of researchers at the New York branch of the US Federal Reserve, stablecoins He claimed that the payments had no future.
in the article stablecoins It has been stated that it has grown significantly in the last two years and its market value has increased to 155.6 billion dollars as of January 21, 2022.
Researchers once ventured into the stablecoin market alone Tether He pointed out that there are now five stablecoins with valuations of over $1.
The researchers said stablecoins are not the best way to transfer money if distributed ledger technology (DLT) is integrated into traditional finance.
Researchers, who think that it is unnecessary for stablecoins to be pegged to a safe asset such as the US dollar for stability, included the following statements in the article:
“Linking safe and liquid assets to a stablecoin arrangement means they are not suitable for other uses, such as helping banks meet regulatory requirements to maintain adequate liquidity.
The use of stablecoins can lead to a shortage of safe and liquid assets.”
Tokenize Deposit Suggestion!
The article proposes that the central bank issue tokenized deposits instead of stablecoins.
Stating that tokenized deposits will benefit from the existing payment infrastructure, the researchers said:
“While a number of practical details will need to be worked out, the principle behind tokenized deposits is simple.
Bank depositors can convert and issue their deposits into digital assets (i.e. tokenized deposits) that can circulate on a DLT platform.
These tokenized deposits represent a claim on the depositor’s commercial bank, just as a regular deposit does.”