Welcome to this edition of the “Future of Finance” series. In this episode, we’re diving into stablecoins — a type of cryptocurrency designed to stay steady in value — and how they relate to central bank digital currencies (CBDCs). We’re also exploring how these digital assets may reshape the financial world.

Stablecoins are digital tokens that aim to hold a consistent value, unlike Bitcoin or Ethereum, which can swing wildly. Most stablecoins are tied to traditional money like the U.S. dollar. This makes them more useful for everyday transactions, like sending money across borders or paying for goods online.

Our guest for this discussion is Heath Tarbert, president of Circle — the company behind USDC, a leading stablecoin pegged to the U.S. dollar. Heath has a background in law and financial regulation and previously led the Commodity Futures Trading Commission (CFTC). He’s now helping Circle grow in a space where trust and transparency are key.

Circle recently went public with an IPO, marking a major milestone. According to Heath, becoming a publicly traded company was all about building trust through clear disclosures and strong governance. Now, Circle’s focus is on expanding its stablecoin network to be the most widely used in the world.

Heath’s journey into digital assets wasn’t planned. Over a decade ago, he began learning about Bitcoin while working in government roles like Assistant Secretary of the Treasury and later as CFTC Chair. That’s when he realized blockchain technology could change how we move money — just like how the internet changed how we move information. What caught his attention was that blockchain could transfer real value digitally, opening up a new financial system.

Heath joined Circle during a tough time for crypto, often called the “crypto winter.” Despite market downturns, he believed blockchain technology was here to stay. He chose Circle because the company was committed to following the rules and doing things ethically — even in an environment where regulations were still being defined.

So, what makes stablecoins like USDC different from other cryptocurrencies?

Stablecoins are digital versions of real-world currencies. For example, USDC represents U.S. dollars on the blockchain. You can send it across the internet like an email or text message. It’s not designed to go up or down in price like Bitcoin or Ethereum. Instead, it’s built for consistency and ease of use, similar to using digital cash.

Other cryptocurrencies are often tied to supply and demand or the success of their blockchain networks. For instance, Ethereum relies on its own token (Ether) to power its platform. These tokens are volatile and act more like investments.

Stablecoins, on the other hand, are meant for spending, saving, and transferring money — not investing. They don’t pay interest or yield like money market funds or bank accounts. Their main benefit is stability and ease of transfer.

But even stablecoins have risks. Just like with banks or money market funds, trust plays a big role. If people stop believing their stablecoins are safe, they might rush to withdraw their money — creating a “run.” We’ve already seen some unstable experiments, like TerraLUNA, collapse due to poor design and lack of proper reserves.

Circle tries to avoid these problems by backing USDC 1-to-1 with safe assets like short-term U.S. Treasury bills and cash equivalents. They also publish regular reports showing exactly what’s backing their stablecoin — giving users peace of mind. Still, not all stablecoins follow these practices, which increases the risk of instability.

A major lesson came during the collapse of Silicon Valley Bank. Circle had some reserves there, which caused concern about USDC’s stability. That situation highlighted how traditional banking problems can spill into crypto. Since then, Circle has moved most of its cash into top global banks and continues to push for better regulation that allows safe participation from larger banks.

Looking ahead, Heath supports uniform rules for all stablecoin issuers — just like the European Union has done with its MiCA regulations. Stablecoins should be treated as digital cash and held to strict standards: fully backed by safe assets, clearly regulated, and transparent.

However, not every token needs to play it safe. Some can offer yield or take more risk — but those should be clearly labeled as investments and regulated differently.

As for future regulations in the U.S., Heath is optimistic. The Biden administration has made it a priority to introduce clear laws for stablecoins and broader crypto markets. New bills are progressing through Congress that would define rules for trading platforms, asset custody, and even decentralized finance (DeFi). Circle already follows many of these rules voluntarily — such as anti-money laundering (AML), know your customer (KYC), and counter-terrorism finance standards — but consistent federal regulations would help the whole industry grow responsibly.

So what could this mean for you in 5 to 10 years?

The financial system might look very different — faster payments, lower fees, more global access. Imagine being able to send money instantly to friends abroad without paying high fees or waiting days for transfers to clear. Or think about people in countries with unstable currencies being able to store their savings safely in digital dollars right from their phones.

Even new innovations could emerge — like AI tools paying creators automatically when content is used online — all powered by blockchain and stablecoins.

But what about CBDCs? Some countries, like China, are experimenting with central bank-issued digital currencies. The U.S., however, isn’t rushing into it — largely because of concerns around privacy and cybersecurity.

In Western democracies especially, people are wary of government tracking every transaction. There’s also fear that a government-issued digital dollar could disrupt private banks if everyone moves their money directly into central bank accounts.

Instead, Heath sees a future where private companies issue stablecoins under strict regulations while the Federal Reserve oversees the broader money supply — allowing innovation while preserving privacy and security.

Finally, for students looking ahead at career choices: consider fintech and blockchain as fields full of growth potential. But no matter what path you choose, think of yourself as your own CEO — managing your own career brand with integrity and curiosity. Stay open to learning new things, take smart risks when you can, and choose companies that align with your values.

The future of finance is changing fast — with blockchain and stablecoins playing a central role. It’s an exciting time to be part of this transformation.