Manila Digital Currency held a discussion about stablecoins at BlockchainSpace PH at 111 Paseo de Roxas, Makati City on 23 April 2019 from 7 PM until 8 PM.
The event provided attendees with knowledge on stablecoins, their current and potential uses, their future, and their legal and regulatory implications through presentations and a panel discussion.
Engr. John Clark Naldoza, chief technology officer of MergeCommit, and Atty. Rafael Padilla from Farcove Consulting were featured at the event as speakers, with Peter Ing, SCI head of enterprise, as moderator.
Engr. John Clark Naldoza provided a background on stablecoins during his presentation.
Naldoza said that stablecoins is the “holy grail of cryptocurrencies”, as it is being seen as a solution to the problems faced by cryptocurrencies.
Cryptocurrencies were noted by Naldoza to be a volatile currency that makes them unlikely to be used to price goods and to compensate for services, adding that these also lack intrinsic value, regulatory oversight and institutional capital.
Naldoza pointed out that there are three kinds of cryptocurrencies: centralized IOUs which bases their value on fiat currencies or precious metals and relies on centralization and bank accounts, crypto-collaterized which is backed by digital assets such as other crpytocurrencies, and non-collaterized which is supplied based on market forces.
The future of stablecoins is believed by Naldoza would include banks and governments issuing their own stablecoins.
Atty. Rafael Padilla talked about the legal and regulatory implications of stablecoins in his presentation.
Padilla said that stablecoins are currently used for trading and speculation, as well as in avoiding taxes and making payments outside the banking system.
Padilla believes that stablecoins have the potential for future use cases that includes customer-to-merchant payments, peer-to-peer payments, automated payments, remittances, and inter-bank payments.
Factors mentioned by Padilla that are being looked at the legal and regulatory analyses of stablecoins includes the facts and circumstances of stablecoin issuance, the rights and obligations of parties involved in the transactions, and the nature or function of the stablecoin.
Other factors included anti-money laundering and counter-terrorism financing, know your customer, financial markets and licensing.
This was followed by a panel discussion with the two speakers moderated by Peter Ing.
The panel discussed about the several questions brought up by the event attendees on cryptocurrencies that included those on the role of stablecoins in cryptocurrency adoption, implications of regulations in the decision of businesses to use stablecoins, and mechanisms stablecoins should have to avoid the volatility of fiat currencies and collaterals.