WazirX Founder Advocates CBDC Integration to Address Stablecoin Risks
Nishchal Shetty, the CEO and Founder of WazirX, a prominent crypto exchange in India, has urged the integration of Central Bank Digital Currencies (CBDCs) onto public blockchains as a solution to mitigate stablecoin risks. Shetty emphasized that by utilizing programmable CBDCs on decentralized networks, users can directly control the assets supporting stablecoins. This shift reduces reliance on centralized custodians and enhances security, transparency, and trust within the ecosystem.
Furthermore, Shetty highlighted the importance of reducing systemic risks associated with stablecoins in the Web3 ecosystem. Integrating CBDCs onto public blockchains empowers end-users to have control over the assets backing stablecoins, eliminating the risk of losing custodied fiat in case of a central entity collapse. The introduction of CBDC integration also brings greater regulatory oversight and accountability, instilling confidence in the stability and legitimacy of CBDC-backed stablecoins.
India’s CBDC to Introduce Programmability
Shetty’s statement aligns with the Reserve Bank of India’s (RBI) launch of a rupee CBDC with plans for programmability. He believes this development will drive CBDC adoption and unlock new use cases. Shetty sees immense potential in programmable CBDCs to transform the digital finance landscape and stimulate innovation among developers.
He envisions a wide range of use cases emerging from opening CBDC integration to all developers, further enhancing its adoption. Additionally, Shetty highlights the possibility of integrating CBDCs with decentralized blockchains, facilitating the integration of the Indian Rupee (INR) into decentralized finance (DeFi) platforms. This integration has the potential to strengthen the INR and provide significant benefits to India’s economy.
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