What are the stablecoins for? They are a gateway to decentralized finances. This was the evaluation of the speakers who participated in the panel on stablecoins in the 2019 Blockmaster Forum last Thursday (29/8) in São Paulo.
The Head of Investments at Transfero Swiss, Carlos Russo, defended the idea of a cryptocurrency pegged to Real, as is the case of the BRZ. He mentioned as an example the access of an investor to the tokens of certificates of judgment debts, which are being traded by the Bitcoin Market. “It makes more sense to negotiate them against a stablecoin pegged to the Real than against the bitcoin”, he evaluated.
Carlos Russo believes that a token pegged to another currency in Brazil would not be viable. “The Brazilian regulator would not allow a stablecoin pegged to another currency in our territory because the Central Bank would lose the ability to make monetary policy with it”, he stated.
Without mentioning by name the BRZ, Maker’s Business Development Director, Nadia Alvarez, followed the same reasoning. She said having a paired stablecoin to a national currency enables the secondary market of such cryptocurrency in that country and financial services linked to it. The Maker has a stablecoin pegged to the dollar, the DAI, but does not exclude the possibility of having stablecoins paired to other fiat currencies later on.
What purpose is served by the stablecoins in debate?
Panelists discussed the current stablecoins models on the market. Basically, today there are three solutions to enable a stablecoin. The first is a private stablecoin, as in the case of the BRZ, with a collateral deposited in the bank. The second is the use of the TrustToken solution as a way to secure the collateral without the need of a bank. And the third one is the solution adopted by Maker, in which the collateral is in crypto, currently in ether, but in the future in bitcoins.
Panelists had also commented on having stablecoins issued by the central banks. The feeling is that if this becomes a fact, there would be competition between these institutions around the world, and in theory, this would be beneficial to consumers.
However, Maker’s executive said that she bets on a completely decentralized system without central banks and without external auditors. On the contrary, the auditors are the system users themselves. “We don’t want to have any point of contact with the central banks”, says Nadia.
Stablecoins preserve capital and protect investor
Panelists had also addressed the features of the stablecoins to preserve capital and protect the investor from the bitcoin volatility by accessing the cryptocurrencies market. Incidentally, this is one of the main selling points of the BRZ, now corroborated by the market.