Nishchal Shetty, the CEO and Founder of WazirX, a leading crypto exchange in India, has advocated for the integration of Central Bank Digital Currencies (CBDCs) onto public blockchains. In a recent statement, Shetty highlighted the potential benefits of this integration, particularly in mitigating risks associated with existing stablecoins.
WazirX Founder Believes CBDC Can Mitigate Stablecoin Risks
In a post on X, Shetty urged the integration of CBDCs onto public blockchains to offer a compelling solution to mitigate stablecoin risks. He noted that by leveraging programmable CBDCs on decentralized networks, users gain direct control over the assets backing stablecoins. Thus, it will reduce dependency on centralized custodians.
He added that this decentralization of custody not only enhances security but also enhances transparency and trust within the ecosystem. Additionally, Shetty emphasized the importance of reducing systemic risks associated with stablecoins in the Web3 ecosystem. He noted that integrating CBDCs onto public blockchains would empower end-users to control the assets backing stablecoins, thereby eliminating the risk of losing custodied fiat in the event of a central entity collapse.
Moreover, CBDC integration introduces greater regulatory oversight and accountability, as central banks play a pivotal role in issuing and regulating these digital assets. This regulatory framework provides users with added confidence in the stability and legitimacy of CBDC-backed stablecoins. The WazirX CEO also highlighted that this could boost their adoption and utility in the digital economy.
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India’s CBDC To Introduce Programmability
Shetty’s recent statement follows the Reserve Bank of India’s (RBI) launch of a rupee CBDC with plans to introduce programmability. Moreover, he expects this move to drive CBDC adoption and unlock new use cases. Furthermore, Shetty expressed optimism about the potential of programmable CBDCs to revolutionize the digital finance landscape and foster innovation among developers.
By opening CBDC integration to all developers, Shetty envisions the emergence of diverse use cases that could further enhance CBDC adoption. Moreover, he underscored the possibility of integrating CBDCs with decentralized blockchains. He added that it could potentially facilitate the integration of the Indian Rupee (INR) into decentralized finance (DeFi) platforms. In addition, Shetty believes this move could strengthen the INR and offer significant benefits to India’s economy.
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