The collapse of Terra Luna highlights the risks of algorithmic stablecoins, underscoring the need for robust regulation to ensure stability and consumer protection in the digital currency space.

Digital currencies, including CBDCs, can potentially end financial exclusion by providing accessible payment solutions without a bank account, enabling low-cost cross-border remittances, and fostering financial inclusion through innovative digital identity systems.

Firms that use blockchain databases need simple, clear ways to assure customers that they can control their personal data and that it will always be protected in accordance with GDPR. A new generation of permissioned DLT holds promise to not only support data security but also to meet users’ need to control their data in compliance with GDPR and other regulatory requirements.