Thomas Moser: Central banks can help DeFi adoption

According to Thomas Moser, a member of the board of the Swiss National Bank (SNB), the development of decentralized finance (DeFi) will be largely driven by central bank digital currencies (CBDCs) rather than stablecoins. Moser believes that CBDCs will provide stability and security to the DeFi sphere, making it more attractive to investors.

The Growing Popularity of Stablecoins in DeFi

Stablecoins have played a significant role in the development of the DeFi industry. However, Moser believes that stablecoins, such as USD Coin (USDC) and Tether (USDT), pose a risk due to their centralized nature. These stablecoins are controlled by a single issuer and are subject to bankruptcy risks, despite being backed by assets.

The Role of CBDCs in DeFi

Moser argues that CBDCs offer a better alternative to stablecoins in terms of stability and security. CBDCs do not carry any counterparty risk as they are issued by central banks themselves. Algorithmic stablecoins, although theoretically free of counterparty risk, have not yet been successful in practice. Hence, Moser is convinced that CBDCs are the best tool for the development of DeFi.

The Inevitable Combination of DeFi and CBDCs

Moser predicts that the combination of DeFi and CBDCs is inevitable. If CBDCs gain a foothold in the DeFi market, it will attract millions of dollars in investment, and large companies will want to participate in this rapidly growing market.

Moser's Change of Heart on Blockchain and CBDCs

It is worth noting that Moser's stance on blockchain and CBDCs has changed since 2020 when he expressed skepticism about the technology. He considered it too primitive to be used as the basis for something significant. However, his recent remarks suggest that he has changed his mind, as he sees the potential for CBDCs to drive the growth of DeFi.

Conclusion

In conclusion, Moser's belief that CBDCs will lead the way for DeFi development is a promising outlook for the industry. CBDCs offer a better alternative to stablecoins in terms of stability and security, and if they are adopted in the DeFi market, they can attract more investment and boost growth. With the combination of DeFi and CBDCs being inevitable, it will be interesting to see how the market evolves in the coming years.