In this podcast, the hosts discuss the latest stablecoin launches, including PayPal's entry into the space. They explore the potential of stablecoins becoming a core financial infrastructure and their role in bridging the gap between DeFi and traditional finance. The podcast also dives into the business model of stablecoins, the role of stablecoins in transactions and interoperability, and the different types of stablecoins available.
Stablecoins are gaining popularity and can become a core financial infrastructure, with big players like PayPal getting involved in stablecoin launches.
The future of stablecoins may involve partnerships with infrastructure providers like Bridge to enable interoperability between different stablecoins.
Deep dives
Stablecoins as the Killer App of Crypto
Stablecoins are gaining increasing popularity and can become a core financial infrastructure. Players like PayPal, Circle, and Coinbase are getting increasingly involved in stablecoin launches. Stablecoins offer a more stable alternative to volatile cryptocurrencies like Bitcoin and Ether. Recent developments include PayPal launching a USD-backed stablecoin in partnership with Paxos and Coinbase taking a stake in USDC. Singapore has also defined stablecoin regulations. The future of stablecoins may involve partnerships with infrastructure providers like Bridge to enable interoperability between different stablecoins.
The Role of Banks and Stablecoins
Banks play a crucial role in the stablecoin ecosystem by holding reserves for stablecoin issuers. While some banks may issue their own stablecoins, it is more likely that they will partner with infrastructure providers like Bridge to facilitate stablecoin payments. The relationship between banks and stablecoins could resemble the existing FBO (Foreign Branch Operations) banking infrastructure, with infrastructure providers acting as intermediaries. The involvement of banks in stablecoin issuance will depend on factors such as regulatory requirements and the benefits of issuing their own stablecoins versus using existing ones.
The Future of Stablecoins and Blockchains
The evolution of stablecoins will be influenced by the choice of blockchain and the balance between permissioned and public blockchains. While stablecoins running on public blockchains like Ethereum offer global reach and interoperability, permissioned blockchains offer advantages in terms of regulatory compliance and centralized control. The development of both types of blockchains is expected, with permissioned blockchains potentially serving the needs of bank-to-bank payment infrastructure. Meanwhile, public blockchains may cater to the broader ecosystem of applications, including NFTs, DeFi, and Web3 gaming. Finding the right balance between permissioned and public blockchains will play a crucial role in the future of stablecoins.
Central Banks and the Role of Regulation
Central banks have a significant role to play in the adoption of stablecoins and CBDCs (Central Bank Digital Currencies). Clarity on regulatory frameworks is essential to ensure consumer and business protection, as well as fostering innovation. Central banks can also influence the architecture of CBDCs, allowing banks to work with tokenized deposits and stablecoins on public blockchains. Enabling banks to innovate and strike a balance between control and innovation is crucial. The role of central banks includes defining regulations and providing a structured framework for stablecoin and CBDC adoption.
gm. Mauricio Magaldi and Cuy Sheffield are back this week, this time talking all things stablecoins.
In this show - we’re taking a look at the latest stablecoin launches and look at what this means for the industry more broadly when big name players like PayPal start getting involved.
With their increasing popularity, can stablecoins become a core financial infrastructure in our world today?
To discuss all of this and more, we are also joined by an amazing guest:
Zach Abrams, Co-founder, Bridge
Just a quick reminder - nothing we share here is legal, tax or financial advice. Views or opinions expressed by the panel are their own and do not necessarily reflect the view of the entities they are representing.
This episode is sponsored by Visa.
This episode is brought to you by Visa, one of the world's leaders in digital payments. Crypto has opened up a new world of possibilities, and Visa’s helping everyone take part. Consumers now can enjoy the freedom and flexibility of using their Visa crypto-linked cards for everyday purchases at millions of Visa-accepting merchant locations around the world. Join us in this new money movement; learn more visa.com/crypto.
If you enjoyed the show, don't forget to subscribe and leave a review!
Want to join the conversation on all the topics discussed? Tweet or follow the show at: www.twitter.com/bchaininsider
Special Guests: Naveen Jain and Zach Abrams.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode