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Tuesday, June 25, 2024

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

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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

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