By 2030, stablecoins are expected to be widely used globally despite the ongoing competition between Traditional Finance (TradFi) and Decentralized Finance (DeFi), according to digital regulatory professionals.
During a panel discussion on “Digital Assets: Policies & the Road Ahead” at the World of Web3 (WOW) Summit in Hong Kong, the topic of regulated stablecoins was in the spotlight.
The group concluded that regulated stablecoins would remain in use by 2030, given the current growth rate of the stablecoin market. Although the crypto industry is growing rapidly, the first deputy to the Danish Parliament, Alexandra Sasha, stated that regulated stablecoins would gain more strength.
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.”
While acknowledging the need for both centralized and decentralized ways of using payments, Kelvin Lester Lee, the commissioner of the Securities Exchange Commission of the Philippines, was unsure whether regulated digital assets would thrive by 2030.
However, Douglas Arner, a professor at the University of Hong Kong, believes that the entire decade will be a competition between centralized and decentralized approaches. In the end, there is a high probability that regulated stablecoins will emerge as the most widely used monetary instrument embedded in blockchain applications.