Member of the Board of the Swiss National Bank: “CBDCs Will Bring Stability to DeFi Sector”

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According to Thomas Moser, member of the board of the Swiss National Bank (SNB), CBDCs can interact with decentralized finance and bring more stability to the sector.

He has said that centralization and decentralization in digital currencies “can work together.” As an example, he has cited USDT and USDC stablecoins. He has said:

“So ‘something centralized’ has already helped DeFi a lot.”

However, the central bank’s digital currency outperforms stablecoins because it “does not entail counterparty risk.” He has noted that cryptocurrencies like Bitcoin and Ethereum are not suitable to support the sustainable growth of DeFi due to volatility.

He has added:

“Algorithmic stablecoins also do not involve counterparty risk, but so far we have not seen successful projects. A CBDC can provide more stability and less risk.”