Failure of UST stablecoin may accelerate the issuance of state-owned cryptocurrencies

This opinion was expressed by Jonathan Dharmapalan, CEO of eCurrency, a company that provides technology for central banks to issue CBDCs (national digital currency).

«There is a demand for digital money, whether it is in the form of stablecoins or a state-issued asset. We need to decide who will regulate stable cryptocurrencies. Will it be people who regulate banks or people who regulate securities? There is a debate on this issue.»

Other experts believe that CBDC is not interchangeable with stablecoin. The main advantage of stablecoins is the large coverage, user base, and solid reputation of traditional financial institutions.

Literally everyone is talking about the need for regulation now — the South Korean parliament is already going to summon Do Kwon, CEO of Terra, to testify.