Stable Currency and Encrypted Stable Assets: The Future of Programmable Currency

According to reports, stable currency and Central Bank Digital Currency (CBDC) seem to serve both sides of the same coin in providing stable value. However, encrypted stable assets can provide completely different use cases, and CBDC cannot compete with them at all. The key is programmability, as smart contracts can automate and add new features to currencies. Programmability allows for asset support and decentralization, which is not possible in current CBDC design. Developers should leverage the programmable opportunities provided by stable assets, rather than attempting to compete with CBDC.

Viewpoint: Stable currency must be programmable

As the world continues to shift towards digitalization and the use of sophisticated technologies, the need for new forms of currency that can adapt to this change is becoming more apparent. Central Bank Digital Currency (CBDC) and stable-assets are two types of digital currencies that have a huge potential to revolutionize currency transactions, but what differentiates them? This article aims to explore the difference between stable cryptocurrency and CBDC, in terms of programmability, asset support, and decentralization.

Overview: Stable Currency and CBDC

Stable currency and CBDC both aim to provide digital currencies that are stable and reliable. Stable currencies are connected to real-world assets, such as fiat currency, which helps them maintain a stable value. On the other hand, CBDC is digital money issued by central banks and has the backing of the government. Both types of currencies offer efficiency, security, and speed in transactions.

Stable Currency

Stable currencies are designed to bring stability to the volatile cryptocurrency market. They are commonly supported by collateralized assets, such as fiat currencies or commodities, which act as a determinant for their value. This uniqueness has emerged due to the volatility and unpredictability of cryptocurrencies. Stable currency also allows for efficient transactions without an intermediary, which saves on transaction costs and eliminates the risk of counterparty fraud.

Central Bank Digital Currency (CBDC)

CBDC, on the other hand, is issued and regulated by central banks, but unlike fiat currency, it’s a digital version of traditional money. This type of digital currency enables governments to have more control over their payment system, while also providing benefits such as lower transaction costs and greater financial inclusion in the digital economy.

Programmatic Capabilities of Stable Assets

While CBDC and stable assets offer numerous benefits, only stable assets have programmable capabilities. Smart contracts, which allow automated and autonomous transactions, are a key feature of stable assets. With smart contracts, stable assets can be customized and automated, allowing for asset support, integration into decentralized applications (dApps), and more.

How Smart Contracts can Automate and Add Features to Currency

The programmable capabilities of stable assets allow for automation of transactions and the introduction of new features. For example, a stable asset can be programmed to offer smart loans or insurance products. This is not possible with CBDC, as it is only backed by fiat currency and does not enable fully decentralized transactions.

Why Developers should Leverage the Programmable Opportunities in Stable Assets

Developers should focus on the programmable opportunities that stable assets offer, rather than trying to compete with CBDC. Stable assets have unique features, such as decentralized access and asset support, which can facilitate the development of new decentralized applications interconnected with payment systems.

Asset Support and Decentralization

Asset support and decentralization are two key characteristics that differentiate stable assets from CBDC. Stable assets can support different types of assets, such as gold or real estate which adds value to the currency. Furthermore, stable assets can be fully decentralized, enabling peer-to-peer transactions without intermediaries. CBDC, on the other hand, is fully centralized and only backed by fiat currency.

Decentralization and the Future of Stable Assets

Decentralization is the future of stable assets, as it enables fully decentralized transactions, reduced transaction costs and greater freedom for individuals to make payments without the need for government or financial institutions. With decentralization, anyone can be involved in the creation of stable assets which eliminates centralization and promotes security and transparency.

Asset Support and the Development of New Applications

Asset support in stable assets facilitates the creation of new applications that can revolutionize various industries. By creating stable assets that support commodities, businesses can create a stable currency that is linked to real-world assets, reduce transaction costs and create greater efficiency in business processes.

Conclusion

Stable assets provide value that CBDC does not. The programmable capabilities, asset support, and decentralization of stable assets have the potential to revolutionize the cryptocurrency market, and provide unparalleled benefits to users looking to engage in digital currency transactions.
Developers should focus on leveraging the programmable opportunities provided by stable assets rather than attempting to compete with CBDC. With decentralization and asset support, stable assets have the potential to disrupt current payment systems, change the way people transact, and revolutionize industries.

FAQs

**Q1:** How do stable assets differ from cryptocurrencies?
**A1:** Stable assets are designed to provide stability to the volatile cryptocurrency market. They differ from other cryptocurrencies, as they are backed by real-world assets, enabling them to maintain a stable value.
**Q2:** Can smart-contracts be used with CBDC?
**A2:** Smart-contracts cannot be used with CBDC, as it is only backed by fiat currency and does not enable fully decentralized transactions.
**Q3:** Is the future of currency digital?
**A3:** Yes, the future of currency is digital. With the rise of digitalization and technological advancements, currency transactions are gradually moving from traditional to digital payments.