Stablecoins are really 'central business digital currencies' — VC
Jeremy Kranz, founder of Sentinel Global, a venture capital firm, said investors should be “discerning” and read the fine print on any stablecoin.
Investors should exercise “discernment” when considering privately-issued stablecoins, which carry all the risks of a central bank digital currency (CBDC) plus their own unique risks, according to Jeremy Kranz, founder and managing partner of venture capital firm Sentinel Global.
Kranz called privately-issued stablecoins “central business digital currency,” which feature all of the surveillance, backdoors, programmability, and controls as CBDCs. He told Cointelegraph:
Overcollateralized stablecoin issuers, which back their blockchain tokens with cash and short-term government securities, can be subject to “bank runs” if too many holders attempt to redeem the tokens at the same time, Kranz added.
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