Hong Kong lawmaker wants to turn CBDC into stablecoin featuring DeFi

Hong Kong authorities are looking for new designs for a

Wu Jiezhuang is the latest government official to highlight the potential benefits of the combination of CBDC and DeFi. Thomas Moser, a governing board member at the Swiss National Bank, said in September 2022 that a CBDC could provide more stability to DeFi and reduce the risks of its development.

Previously, Mikkel Morch, executive director at the digital asset hedge fund ARK36, suggested that a CBDC doesn’t have to be a competitor to a private or decentralized cryptocurrency. At the same time, a CBDC could potentially diminish the role of private stablecoins, he noted.