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According to Moser, Terra’s crash resulted in a long-term effect on regulators. He said that although not all decentralized stablecoins are like UST, the authorities will be forced to adopt centralized stablecoins because of reliability.

the deputy head of the Swiss National Bank

He said, “I think that regulation will favor centralized stablecoins.”

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Thomas Moser,

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He said, “For DeFi, where there is no single entity to be held accountable for, which is really just smart contracts interacting, you need a different type of regulation.”

Moser also talked about the need for regulation in DeFi and how if the banks implement the current regulatory framework, it could sabotage DeFi as a whole.

In terms of CBDCs, Switzerland seems to be the first few countries where the central bank is releasing its national CBDCs. The bank announced wholesale testing in January whose results revealed greater risks than profit.

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Moser Said

the regulations might take time but they need to be new and different from the current ones. Seeing the results from Switzerland, there might be a low possibility of central banks choosing decentralized stablecoins over centralized ones.

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