Digital regulatory professionals have predicted the wide use of stablecoins worldwide by 2030, despite the current competition between TradFi and DeFi.
Regulated stablecoins are in the spotlight of policymakers as a panel of professionals in the digital regulatory space discusses the future use of the assets at the World of Web3 (WOW) Summit in Hong Kong.
In the panel titled “Digital Assets: Policies & the Road Ahead,” the group discussed how regulated stablecoins would most likely remain in use by 2030, and how the current growth rate of the stablecoin market helps to ensure this.
While recognizing the crypto industry’s growth, Alexandra Sasha, the first deputy to the Danish Parliament, and an advocate for blockchain technology and innovation, said regulated stablecoins would grow stronger.
In her statement, Sasha said, “So I think there’s still two forms of need because you will have people who will want to centralize the digital era, and you will always have the people who do want this decentralized way of using payments, of course, unless it gets banned, but I do not think that’s the goal of anyone.”
Concerning the wide acceptance of regulated stablecoins by 2030, Kelvin Lester Lee, commissioner of the Securities Exchange Commission of the Philippines, said he isn’t sure whether regulated digital assets would be thriving by then. However, they would still be present and might also look different.
Rounding up, Douglas Arner, a professor working in the areas of interconnection between finance and technology regulation at the University of Hong Kong, added that this entire decade would be a competition between centralized approaches and decentralized approaches. According to Arner, the competition applies just as much in the context of the metaverse as it does in the context of the crypto ecosystem, and by the end of the decade, there would be a spectrum of different structures where there’s a high likelihood that regulated stablecoins will emerge as the most widely used monetary instrument embedded in blockchain applications.