CBDCs do not directly threaten decentralized cryptocurrencies; instead, it aims to eliminate the risks associated with stablecoins. This was stated by Mikkel Morh, CEO of the ARK36 crypto fund, writes Cointelegraph.

The senior executive explained that the use cases and value proposition of decentralized digital assets “usually go beyond simple transactions.”

Referring to the speech of the financier chairman fed Jerome Powell allowed “the coexistence of well-regulated private stablecoins and the digital dollar.”

Morh expressed confidence that a similar approach could be followed in other countries, particularly Singapore. According to him, the introduction of CBDC could “encourage the spread of non-sovereign cryptocurrencies and blockchain technologies”.

The latter circumstance does not negate the reality of future competition between “stable coins” and national digital currencies, he added.

“CBDC could reduce the role and demand of stablecoins, provided there is a market for the latter. That’s more true for the US than for Singapore.”Morch explained.

Recently, Sopnendu Mohanty, Chief Financial Technology Officer of the country’s Monetary Authority, expressed great doubts about the value of private cryptocurrencies. He predicted that within three years, a state-sponsored alternative would emerge.

The CEO of the ARK36 crypto fund attributed the official’s statements about the “relentless persecution” of the Central Bank to any “bad behavior” of participants in the cryptocurrency industry, with the collapse of the liquidity problems of Terra and Three Arrows Capital. The latter is registered in Singapore.

Recall that Anthony Scaramucci, head of SkyBridge Capital, treated these events philosophically. Financier said that in the past, in the “easy money” periods, the young representatives of the sector “lost their interest”.

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.