Jeremy Kranz, founder of Sentinel Global, a venture capital firm, said investors should be "discerning" and read the fine print on any stablecoin. Investors should exercise “discernment” 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.Kranz called privately-issued stablecoins “central business digital currency,” which feature all of the surveillance, backdoors, programmability, and controls as CBDCs. He told Cointelegraph:Overcollateralized stablecoin issuers, which back their blockchain tokens with cash and short-term government securities, can be subject to “bank runs” if too many holders attempt to redeem the tokens at the same time, Kranz added.Read more Jeremy Kranz, founder of Sentinel Global, a venture capital firm, said investors should be "discerning" and read the fine print on any stablecoin. Investors should exercise “discernment” 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.Kranz called privately-issued stablecoins “central business digital currency,” which feature all of the surveillance, backdoors, programmability, and controls as CBDCs. He told Cointelegraph:Overcollateralized stablecoin issuers, which back their blockchain tokens with cash and short-term government securities, can be subject to “bank runs” if too many holders attempt to redeem the tokens at the same time, Kranz added.Read more

Stablecoins are really 'central business digital currencies' — VC

2025/10/19 01:58
1 min read
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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.

Investors should exercise “discernment” 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.

Kranz called privately-issued stablecoins “central business digital currency,” which feature all of the surveillance, backdoors, programmability, and controls as CBDCs. He told Cointelegraph:

Overcollateralized stablecoin issuers, which back their blockchain tokens with cash and short-term government securities, can be subject to “bank runs” if too many holders attempt to redeem the tokens at the same time, Kranz added.

Read more

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