Future Bleak for Private Stablecoins, SFB Economist Says

Speaking on a Unitize digital conference panel, Peter Dittus, chief economist for SFB Technologies, said he does see a place for privately-issued stablecoins.

"I don't see a great future," Dittus said of stablecoins on the June 7 panel, live streamed by Cointelegraph.

Stablecoins exist in two categories - privately issued and CBDCs, according to Dittus.

Privately issued stablecoins also often hold to the value of various national currencies, although private entities run these assets, not governments.

Tether's USDT is one example of a privately issued stablecoin.

"If you have a stablecoin issued by a private company, I'm not sure what the point of this is," Dittus said.

"What's the unique selling position of a stablecoin that's issued by a private consortium?" Dittus added.

Although he did not express enthusiasm toward privately issued stablecoins, Dittus does see promise for stablecoins issued by central banks.

Dittus also mentioned interest around a different type of stablecoin for nations torn by inflation, such as Argentina, which would base its value on other assets such as precious metals or goods instead of currency.

"If you have a stablecoin that is linked to the bolivar, who would be interested in that," Dittus said, referring to Venezuela's paper currency.