If large stablecoins are linked to some other currency, there is a risk of dollarisation,” Sankar said at an event organised by IBA. Stablecoins can provide some of this but they are only useful to a few countries that are linked. From the past experience in other countries, it is an existential threat to policy sovereignty,” he said. Cross-border transactionsOn the use cases of CBDC, Sankar said the same is required for global transactions if nothing else, adding that cross-border transactions are the biggest emerging use case at the moment. “As per World Bank estimates, a cross-border small value transaction, remittance transaction is at 6 per cent.

Source: The Hindu July 12, 2023 10:34 UTC