Do Stablecoins Really Make Finance Convenient? The 'Discrepancy' Between Existing Finance and Web3 (Episode 16 of 'So That's How Blockchain Works' with Yoshihiko Uchida, Yuya Sakai, and Shinya Otsuka)

In this podcast, Yoshihiko Uchida, who has a background in banking supervision at the Bank of Japan and the Financial Services Agency and currently teaches blockchain at Shunan University, Yuya Sakai, a founder of a gourmet app who has combined blockchain with Web2 services to build a Web3 business, and Shinya Otsuka, deputy editor of the crypto media "Atarashii Keizai," introduce what you need to know about blockchain today.

In this 16th episode, we continued from the previous "Stablecoin Edition" and discussed the "discrepancy" between the premises of existing finance and the ideals proposed by the Web3 industry.

First, we organized the basics of existing finance into three points: the final settlement means being fiat currency, the economic system being based on bank credit creation, and the existence of a system for bankruptcy that allows credit to be established based on the possibility of default.

In contrast, the ideals of the Web3 industry include the democratization of currency issuance authority, a decentralized system that does not require banks, and self-responsibility based on over-collateralization and "Code is Law." We confirmed the structural discrepancies in discussions regarding KYC and privacy between the two.

Furthermore, we pointed out that if stablecoins are to be used in existing finance, they must adhere to existing systems for transferring ownership and managing credit, making it difficult to "pick the best of both worlds." We also noted that for banks, tokenized deposits are more logical than stablecoins, and there are discussions at institutions like the BIS (Bank for International Settlements) and IMF (International Monetary Fund) that consider stablecoins immature from the perspective of the required "uniqueness, flexibility, and completeness" in payment methods.

Finally, we delved into the background of the U.S. promoting stablecoins while banning CBDCs (Central Bank Digital Currencies), exploring the motivations surrounding currency issuance.

Additionally, we raised concerns about "on-chain finance," questioning what existing finance will change and to what extent, noting that sufficient foundational information for the discussion has not been provided. We concluded with the perspective that blockchain might be better utilized in areas outside of finance.

Episodes 13 to 18 will explore the basics of existing finance and the potential for integration with blockchain.

The next episode, the 17th, is scheduled for release on September 15, 2026. Building on the discussions of stablecoins so far, we will explain the relationship and potential of stablecoins in the context of DeFi (Decentralized Finance).

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