17.7 C
Tuesday, June 25, 2024

Swiss Central Bank: Digital currencies will help maintain the stability of the DeFi market

- Advertisement -
binance 728x90 banner

The Swiss Central Bank believes that national digital currencies will be able to effectively interact with tokens deployed on the DeFi decentralized finance market.

As noted by Thomas Moser, who is part of the managers of the National Bank of the country, DeFi projects will grow due to the entry of capital. It can enter, including in the digital currencies of central banks. Currently, DeFi protocols use Tether (USDT) and USDC stablecoins. But in the future, CBDC can be integrated, such tokens will also be able to improve the liquidity of ecosystems.

According to the representative of the Swiss Central Bank, CBDCs are more reliable instruments, since their issuers are not private companies, but states. Accordingly, the risks of fraud and manipulation will be minimal.

The DeFi market will become more resilient if its financial health is supported by central bank tokens, Moser emphasizes. Recently, the Bank for International Settlements (BIS) called for the development of special software that will become a kind of “bridge” between CBDC projects implemented by several states

- Advertisement -


Crypto investments come with high risk and you should always exercise caution when investing in any crypto asset. Investing in crypto carries a high level of risk, and may not be suitable for all investors. Any investment decisions made by you are made at your own risk and we are not responsible for any losses that may occur. Before investing, we recommend you consult a financial advisor to understand the risks and rewards associated with investing in crypto.

- Advertisement -binance
Related Articles