In the wake of the introduction of CBDCs in about 5 years from now, D&O-Policyholders may increasingly request alternative (optional) payment methods for both premium payments and claims payments. In times of high inflation asset-backed Stablecoins, such as gold-backed cryptocurrencies, may serve Policyholders better for the purpose of D&O asset protection than CBDCs linked to fiat currencies. The D&O insurance industry should explore both options – CBDCs and asset-backed Stablecoins – for issuing and offering D&O insurance policies, so that Policyholders have a choice. Insurers should monitor the developing regulatory environment for CBDCs and Stablecoins. Finally, the D&O insurance market may soon be ready for a gold-backed D&O Policy. A famous quote from J. P. Morgan reads: “Gold is money. Everything else is credit.”
Source: Guest Post: What D&O Professionals Need to Know About CBDCs and Stablecoins | The D&O Diary
