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Jeremy Kranz, founder of Sentinel Global, a venture capital firm, said investors should be “discerning” and read the fine print on any stablecoin.<\/p>\n
Investors should exercise \u201cdiscernment\u201d when considering privately-issued stablecoins, which carry all the risks of a central bank digital currency (CBDC) plus their own unique risks, according to Jeremy Kranz, founder and managing partner of venture capital firm Sentinel Global.<\/p>\n
Kranz called privately-issued stablecoins \u201ccentral business digital currency,\u201d which feature all of the surveillance, backdoors, programmability, and controls as CBDCs. He told Cointelegraph:<\/p>\n
Overcollateralized stablecoin issuers, which back their blockchain tokens with cash and short-term government securities, can be subject to \u201cbank runs\u201d if too many holders attempt to redeem the tokens at the same time, Kranz added.<\/p>\n
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