According to the deputy financial officer of the city of Lugano, Paolo Bortolin, Bitcoin, CBDCs, and stablecoins could coexist as they can serve different purposes for each user.
Paolo Bortolin, deputy financial officer of the city of Lugano, has discussed the potential coexistence of Bitcoin, CBDCs, and stablecoins in the Swiss city, stating how each of these forms of currency can satisfy different use cases for each user.
The role of Bitcoin, CBDCs, and stablecoins
Bitcoin is described by Bortolin as a completely decentralized entity that operates independently of any central organization, unlike CBDCs, which, by definition, have a centralized nature. According to Bortolin, the two main types of CBDCs will be wholesale CBDCs and retail CBDCs. The former will be used in the financial sector to manage transactions among institutional actors, while the latter will be part of the everyday digital payments landscape.
In an interview with Cointelegraph, Bortolin warns of potential tensions with some forms of state-issued currency and the role of commercial banks. For example, if individuals can manage all their Swiss francs through a single digital wallet controlled by the central bank via a CBDC, the need for traditional banks could diminish.
The deputy financial officer has recognized the importance of stablecoins as a tool in the digital financial ecosystem, at least until full adoption of CBDCs intended for daily use is achieved.
