Bitcoin Forum

With the advent of Tether (USDT), the stablecoin industry has advanced at a very fast pace. There are now many stablecoins on the market aiming to bring the stability of traditional Fiat currencies with the security and reliability of crypto/Blockchain tech. Traders can use stablecoins as an alternative to existing Fiat without having to cash out directly to a bank. To say the least, stablecoins are the new digital Fiat system where companies hold all of the power (instead of the government). Yet, central banks have announced their intentions to launch CBDCs (Central Bank Digital Currencies) of their own. If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency? Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

What do you think the future of stablecoins will look like after CBDCs are launched? Will they die in the end or will they co-exist with CBDCs? Your input will be greatly appreciated. Thanks. :)

They can't back the current stable coins because they have no power over it. They don't control it so that means to them that they have to rely on the central authority of whoever is behind that stable coins.
That's one major reason why they have been making these cbdcs and since they've got a powerful back up which is the government, that's how it should go.
Well if there's a choice, personally, I'll head over the decentralized stable coins.

A very strict competition will be happening. People have more choice to pick which was stable token that will be used by them whether it would be CBDC or stable token issued by a company like tether.
It's just the matter of time until there will be a very strict regulation about who can use CBDC and let's see how CBDC will be integrated with the crypto community.
The implementation of CBDC is still so far to be real just like when you are seeing if china CBDC is not yet used for the digital purpose like crypto.
The regulation may strict CBDC

I don't know what people think, but I feel with the advent of CBDC we will enter a market with wider acceptance in many countries. And it will not affect stablecoins too much. When things are not clear, I think we can hardly appreciate their true nature. CBDC is a term I've been hearing since about 2017, but maybe we're getting closer to understanding it.

I think that they will coexist.

Personally, CBDCs aren't going to be used on a day-to-day basis for most international or online transactions simply because of the fact that it is traceable and the government is likely going to have control over the ledger.

There is still going to be a need for stablecoins, especially algorithmic ones, to ensure that governmental pressures do not result in loss of funds. Although for centralised stablecoins this is going to be increasingly difficult anyway.

Why can't governments back stablecoins instead? Obviously because it is unimaginable for governments to forget about their issued currency in favor of a currency issued by a private company. That will never happen. I don't think any government for that matter will simply accept a subservient role to private individuals issuing centralized currencies of which they have full control.

I think the stablecoins' role will be greatly reduced as soon as CBDCs become a thing. But I don't think they will be totally erased out of existence. Exchanges for example would have a hard time offering fiat services to their clients, so they might still prefer stablecoins.

if CBDC launched i will use it especially if launch in my country but the current stablecoin wont go away in my opinion. CBDC launch by government so is less wory but like other said that highly regulated and maybe only happen in single country like china right know i mean is only on government private chain

If the regulators will be making CBDC will be available to all of parties just like the fiat money and im sure that the trend of stable token will be eaten by CNDC. This caused by the regulators give more guarantee rather than company who issued the stable token that have not yet fully audited. That's pretty interesting to see that about how this will be going on.
Im waiting for the CBDC will be launched by some big countries and this will become a serious competitor for the stable token although stable tokens already dominated the cryptocurrency.

The existing ones? No, they will not, they have their own local currency. CBDC is pegged on their local currencies, most existing stablecoins are pegged on USD with the fund backed by the companies behind. So how can they back it.

Most probably this CBDC will not be tradable on any cryptocurrency exchanges like the existing ones, it will only be used as a tender or can be traded on specific platforms only.

One thing for sure is that CBDC will not be able to compete with stable coins...

the current majority of stable coins like USDT and BUSD are backed up by other crypto assets such as BUSD which is backed up by binance and engages the crypto community, while CBDC is an asset that is backed up by the government but doesn't want to involve the crypto community (in fact their goal of creating it is to fight currency existing cryptocurrency), even though the government is free to issue regulations, people believe in stable coins more than CBDC.

People will continue to use stablecoins because there is at least the perception of some kind of privacy. You can self custody & control your own funds. CBDC’s are a horrible creation, the government/bank can freeze your accounts at any one point. I will avoid CBDC’s as best as I can.

Stable token will be co exist with CBDC but the different result when the government wanna try to ban all of the stable token and making the CBDC will be mandatory to be used in all of crypto exchange sites. This will be making CBDC to be used by the whole of crypto market and it may become the end for the stable token. The question is whether the government from any countries will be taking an action against the stable token. This will become a disaster for the stable token creator once the countries will be starting to against them.
So as an ordinary people and i can't say a lot about that caused by the future of the stable tokens totally depend with the government statement.

Well, some stable coins have proven that they are able to freeze some accounts. I don't see any difference about it.

I don't think it can be said to reinvent the wheel. AFAIK, CBDC will surely have a significant difference with stable coins, technically. A few reasons CBDC is being built are to maintain control, and to have direct access to the currency itself, with that being said I don't see they will be built using blockchain like XRP, Stellar or even EVM-based tokens.

If governments will strictly control and regulate stable coins, I don't see what is the point of stable coins themselves. People will move to their own acceptable CBDC to deal with everything including cryptocurrency-related things.

Government cannot back what it didn't create or does not control. CBDC will co-exist with Stable coins, the people will hardly trust any creation of the government in this crypto and blockchain world. CBDCs could only be mandated by the government for international trading and exchanges, but for traders, they will stick to stable coins like usdt they know.
This is correct, atleast you will have the sense that you control your money yourself. Then, government will not over push the CBDC project because it will affect the banks, unless they allow banks to manage them.

People prefer stable coins against the CBDCs. A central bank backed digital currency is just a new form of traditional fiat. This can ease the transaction of large scale funds between governments if the CBDC is created and integrated. The existence of these kind of cryptocurrencies will diminish the real value of decentralised money.

Recently read about a project on CBDC where few countries like Malaysia, Korea and few more involved. Here this will support multiple country transaction. This helps cross border transaction for minimal transaction cost.

It depends, if you want to hedge your funds against the declining price then go with stablecoins and then play along as the market bounce back.

For me stable coins can't be traded right? as far as I understand, they won't be in an exchange. But it has its own purpose obviously for the government and for the people to make transactions smooth in their country. But still they are very different as compare to stable coins that is being used for crypto trading.

Every government wants full control of their own CBDC so they won't patronize the existing stablecoins. Because CBDC as you mentioned already that it is just the digital form of their traditional fiat currency. So every country has their own fiat, hence, they would want to have their own CBDC rather than use the existing stablecoin, in which, they don't have the control of its existence.

There will be a very strict competition between both and i was feeling curious which was one was better from both. I meant the companies will be competing with the regulators. If this competition will be real and this can be a very good thing for sure. People have more choice to pick which was stable token that is worthy to be used as a safe heaven for their assets during the bearish market. I would like to see that if both will be co exist and people will have more choice rather than only focusing into the one choice.
This is good for the ecosytem as people can also save their assets into the CBDC as well even if that was fully monitored by the government.

Algorithmic-based (decentralized) stablecoins might co-exist with CBDCs, but centralized stablecoins backed by real world reserves will eventually die in the long run. That's because governments will increase pressure on centralized stablecoin issuers to close up shop. After all, they don't want to lose dominance over their newly-launched digital currencies. Existing stablecoins such as Tether (USDT) and USD Coin (USDC) are just experiments for what's coming in the future. Once the US Digital Dollar is born, there will be no reason for such coins to exist anymore.

Things are developing rapidly in the crypto/Blockchain space, so it's hard to predict what will happen in the future. I don't mind about stablecoins and CBDCs as long as decentralization prevails in the long run. Just my thoughts ;D

If people suddenly jump from using stablecoins to government cbdc then yeah there is a possibility the stablecoins era will end but if nobody uses cbdc and no government of any country forces their citizens to use it, I think stablecoins will just be fine and operate as usual. It all depends on the end users.

It will be easier for each user on different countries with CBDC. There's no necessity for converting USD backed stable coins all the time just to adjust the trades or calculate the profits. I do to that before and its time consuming.  :D
Early parts will be co-existing with it but once users got used to the new thing they will start to forget about stablecoins. That's the crucial part but I think stablecoins won't just go away for there may be exchange/trading platforms that won't agree with it yet.
Like BTC to USDT to CBDC for withdrawals and vice versa for deposits.

Goverment of any nation want to exercise their authority when it comes to handling finances. The advent of cryptocurrencies has been a concern for some Countries, as such Central Bank Digital Currencies (CBDC) is one of the ways the Government can participate in digital economy and perhaps benefit from it. Basically, having your funds in CBDC is not the same as having your funds in USDT, DAI and other crypto stable coins. Privacy and anonymity still plays role in cryptocurrency. While CBDC and crypto stable coins will co-exist for a length of time, crypto stable coins offer more anonymity and privacy when compared to CBDC. Government operating CBDC want to be in charge of people funds hence a third party. That is contrary to the true essence of crypto (the essence of establishing Bitcoin) 'Be Your Own Bank'. While some stable coins are somewhat centralised, they still offer more privacy when compared to CBDC.

CBDC of US will be probably the same as stablecoin, with the difference one is centralized by a government and the other is centralized by a company (which is still regulated by the government anyway), so they are pretty similar. Maybe CBDCs will be more precise at the 1:1 ratio conversion than stablecoins, but I'm not sure yet.

Between the two options I prefer to pick the less bureaucratic one. I expect CBDCs to be harder to deal with due to regulations and limitations imposed by each local government, so it's likely I will keep with stablecoins, but if CBDCs are going to be user friendly currencies I see no problem in adopting them as well.

I agree that over time, governments may ban the circulation and use of private and other non-government stablecoins. States can do just that. After all, private stablecoins mainly use government fiat to provide them, and at the same time, private stablecoins are direct competition for state-owned CBDCs. Governments will certainly not use private stablecoins if they can create their own, which they can fully control. The public will most likely use their state's CBDC. This will largely depend on how all types of stablecoins will work with the cryptocurrency market.

CBDC and tether to me look the same, so if CBDC is adopted by crypto exchanges then stablecoins like tether are no longer needed. only stablecoins like DAI that are truly decentralized will survive. can coexist, but I'm not sure the two will be the main choice. but it all depends on the centralized exchange, if all CEX agrees not to adopt it then CBDC will not enter the crypto space. and stablecoins like tether will remain the top choice.

I think that Stablecoins are still around. although I feel that it will be tough competition for Stablecoins to compete with CBDCs. the reason is, some people will still use Stablecoins because they think that it is a real crypto. however, I also think that it will remain in the habit of longtime crypto users to stick with Stablecoins. however, if CBDCs had more flexibility, I think new people or even old users will also use this coin as a habit. especially if CBDCs have government guarantees, and other advantages, I think new people will tend to use CBDCs for their Stablecoins needs in the crypto world.
however, if CBDCs only came as stabilcoins, I think stablecoins like theter would still be at the top.

The core issue with the nature of the two currencies lies in control, but the question is which one is better for the crypto market, which makes them more mainstream in world finance and growth true to their nature? I do see that the future adoption of CBDCs by governments will come with a lot more regulatory implications. The magnitude of the effect, however, we should wait and see.

There is no need to consider the creation of CBDC as a replacement for stablecoins, since it is one of the varieties of money, along with its cash and non-cash form. Accordingly, the creation of a CBDC takes money to the next level of development, based on the blockchain, which accordingly helps the government to establish total financial control over its citizens.

essentially they want to create a stablecoin that they can actually control. USDT, UST, USDC and other stablecoins are not government owned. although the government can control it by making regulations but still it cannot be fully controlled. that's why they wanted to develop stablecoins from scratch. their goal is only one they don't just want a piece of cake, but they want to get it all. that's why they made this.

which became a problem when it became a reality, whether the crypto community accepts it or not. if they accept it then mainstream stablecoins like tether will be abandoned.

In my opinion, as a second generation cryptocurrency, stablecoins are probably more tested and proven than CBDCs. Stablecoins have great potential if they are able to bring in more institutions and increase their liquidity volume. The popularity of stablecoins is growing among individuals and businesses and If take closer look In recent years many new stablecoins have been launched and each has set benchmarks in terms of liquidity, transparency, technological advancement and global reach. If i not mistaken, some governments even welcome them with open arms because it seems much easier than launching a digital version of their fiat currency.

This will become another shitshow for sure. The companies vs regulators. So people will be hardly speculate about which will become the winner but this time market dominated by the stable tokens that issued by the companies rather than regulators. If CBDC will be working locally like what china CBDC does and im sure that if crypto stable token that worked globally will always be dominating the market.
I can't wait to see that what will be happening with the crypto market once CBDC will be rolling out. This is a very interesting drama to be watched for sure whether the gov will try to rush stable token that exist in the market or not.  :D

I know I will be hated for this but 100% definitely CBDC. If I am going to trust my money in basically fiat form, then I would rather do that with government and not some company. Many people here trust USDT but I do not trust them, who is tether? Who is bitfinex? Why would I trust them? They are literally nobody that we trusted tens of billions of dollars, it is around 100 billion or so nowadays isn't it? Makes no sense to me at all.

I believe that if you do this with governments then it should be better, one way or another they will pay you, maybe it won't be as easy, or maybe it will hurt the economy but they will find a way to pay you. Companies could be just closed and say they are hacked or bankrupted or whatever and be gone.

Both stablecoins and CBDCs are basically the same thing. They're essentially a "digitized" version of Fiat. The only difference is that one is backed by the government and the other is backed by a company. I'm pretty sure centralized stablecoins will cease to exist in the future due to increasing government pressure. We'll be left with CBDCs acting as a replacement against existing stablecoins.

What we're experiencing now is just a "prototype" of what's coming in the future. After all, stablecoins are experimental grounds for CBDCs. What matters is that crypto stays decentralized in order to give people an "escape route" from the corrupt monetary system controlled by central banks and governments alike. While Fiat won't be going anywhere soon, decentralized cryptocurrencies will become a major contender against it. Who knows what the future will look like with both CBDCs and traditional cryptocurrencies in play? Just my thoughts ;D

And I'd say that it is a huge difference: CBDC is fiat by itself and stablecoin is a commodity which is promised to be exchanged for fiat. Different levels of reliability: if I don't trust fiat I don't trust surrogate of fiat even more. Less a month ago Cashio Dollar become zero and it supposed to be stable... If dollar one day become zero all stablecoins connected to it will do the same, but bankruptcy of Cashio Dollar didn't lead to bankruptcy of USD.

if you look at stablecoins and cbdc, they are not much different, the only difference is that cbdc is managed by the government. but I'm fed up with regulations, so I prefer stablecoins over cbdc. if cbdc goes into the crypto industry, it's not just me who disagrees maybe everyone in the crypto community will be against it. crypto is decentralized, and centralized systems especially government-run ones have no place here.

cbdc is a central bank token that cannot be a scam, although we call a scam any token that has an uncontrolled and unforeseen emission.
But I am also very interested in when the world regulators will begin to impose restrictions on stablecoins.
https://www.coingecko.com/en/categories/stablecoins
Apparently 188 billion is not the limit.

A Government using stable coins is like using another country's currency as your legal tender. It sends the message that they have a very weak financial system and I doubt any Government leader would like that to happen.

The risk probably outweighs the "hassle-free" benefit. It would not take them that long to catch up with the technology. It could only take them a year or two from researching to testing before launching their own CBDC.

I think I would go for the stablecoins. It's decentralized though there is an element of centralization. CBDCs are just too centralized for my taste and its not right

I do not fully trust all the stable currencies in the cryptocurrency space but i will not use any Central Bank Digital Currencies because they control everything about the currency and have the opportunity to monitor them and even freeze my currency if they want to, we have not seen that kind of control from the stable currencies we have in circulation even though they are able to do those same activities. I am just curious to see how things develop in the future and then make my complete decision about these things.

CBDCs will have more credibility than stablecoins, simply because they're backed by the full faith and credit of the government. I doubt centralized stablecoins will survive as people will prefer CBDCs instead. Only decentralized stablecoins will stand against CBDCs as they don't have any central operator (issuer) behind them. They will prove to be an excellent alternative for those looking to escape government surveillance. I'd focus more on traditional cryptocurrencies such as Bitcoin or Ethereum since they're not directly tied to Fiat. As long as decentralization wins, there should be nothing to worry about. Just my thoughts ;D

I see government financial services authorities getting jealous of the success of private companies specifically in the field of blockchain technology.
Basically the financial services authorities have rejected the existence of crypto on the grounds of a bubble. But it didn't work. In the end they themselves also plunged into the world of blockchain.
In this case I am not talking about the success of the crypto stable, but rather about the fate of other stable coins. I'm just worried that their existence will complicate private companies.

Private companies also know that they will experience difficulties due to the presence of financial services authorities into the crypto space, but basically private companies also have safer ways and ways to maintain their products such as stablecoins.
So in this case I would still believe in stablecoins over CBDCs

Cashio Dollar I mentioned is a kind of decentralized decisions but that didn't prevents its failure. There reasons of failure will be just different for different types of stable coins but I suppose that sooner or later all existing stable coins will disappear in contradistinction to bitcoin.

Well we know that more than anything what government want is power, and that power can only be obtained by controlling more and more people, so even if stable coins already exist backing a stable coin will be the same as recognizing that stable coin as their new fiat, which I think it will never happen.

But then what would happen with stable coins issued by private companies? Personally I think there will be a very strong effort by the governments to eliminate them, after all they are owned by centralized exchanges which can be easily regulated by them under the threat of imprison their most important board members, so I do no think it would be a problem for governments to eliminate them.

As far as I understand, CBDC is a tool for government to control the market in the way that it exists which will create friction and pressure on pure stablecoins like USDT, etc., so it is no coincidence that the release  The advent of more scalable and decentralized stablecoins has been warmly supported in recent times.  CBDC is not compatible with Defi because it cannot.  The purpose of applying CBDC is to trigger the transition from correspondent banks, creating a spiral for them to come to the central bank = easy control.  One more reason that decentralization will be the next future.
So, See how the market reacts to CBDC and it's almost ready!

I guess the govs are not okay with stablecoins being under someone else's control and not truly being backed by fiat or anything of value on the required level, so they want to do it their way. But internationally, I think there's more trust to stable coins because they are not controlled by governments. CBDCs work for local markets largely, IMO, whereas CBDCs are something used internationally. So even they, IMO, aren't competing against one another, even though they have some similarities.

If we are talking about centralized steblecoins backed by dollars, I am not sure that all the power belongs to the companies. All the collateral is on a bank deposit, and if the bank decides to freeze these assets, there is nothing the company can do. Another thing is if we are talking about decentralized stablcoins like DAI and also algorithmic stablcoins which are pegged to dollar but have bitcoin or altcoin reserve, like UST from Terra.

I'm not sure that CBDCs will completely replace stabelcoins. Maybe the binding will change, which used to be fiat based and now will be CBDC based. Although many stablcoins are tied to the dollar and we won't see a digital dollar anytime soon.

Stablecoins, as well as other cryptocurrencies, are subject to price manipulation. This is clearly noticeable with the recent fuss over the Waves USDN stablecoin, which has lost 40% of its value in price. The price of the GBR fell by about the same amount in 1992, and accordingly, if this happens again now, then the cost of CBDC will accordingly fall by the same percentage. So nothing is perfect as long as the possibility of manipulation remains.

They are almost the same right? But the only difference is that CBDCs are new, it was like we are comparing an old altcoin to the new altcoin but people will have more trust on the old one so no, stablecoins will not die but if there is one that is going to die that will be the CBDC.

There are different kinds of stable coins to choose from, not just about the name but there is also a decentralized based stable coin. This is one of the things why people will stick on the old stable coins. And is that possible to backed something that they don't own? Maybe it isn't, that is why they are planning to create their own currency in the form of CBDCs, where they can have a full control.

CBDC value cannot be manipulated, saying this is just like you saying that forex can he manipulated when that’s not the case. The cryptocurrency market can he be manipulated and that’s because of how they are decentralized and totally out of the control of the government so the community is what controls it, when people are investing more money in it, the value will be increasing. In the case of the CBDC it is pegged with fiat so it is only the government that can decide the value, they can either inflate or deflate it if whenever they want.

Well, I guess the government just wants to have something that belongs to them entirely, because stable coins are being run by individuals and not the directly by the government, so they can’t make the full decision on what happens with these stable coins.

But you still have a point, most of these stable coins are centralized, and that includes USDT, so the government should have just backed them rather creating CBDC. Even CBDC are still fiat, I do wonder the need for having all these things, totally unnecessary to me. But between the two and If I’m to choose, I am going to choose Stable coins, especially the decentralized ones like DAI.

I previously gave an example of a real fact when there was manipulation of the price of the pound sterling. And this manipulation of the fiat price is carried out by governments, unlike the cryptocurrency market, where price manipulation is carried out by large capital. It is the government that indirectly influences the discount rate and the issue, changing the value of fiat money. And the market in this case is the international financial system. In this case, the cost of CBDC will also change, since it is directly related to fiat.

Both suck but somehow I would prefer CBDC's to Tether because tether is a shady token without and legal ground. In the end neither of those entities are going to back their tokens with any real assets. Bitfinex is already known for printing USDT out of thin air and the CB's will not be any different in this matter. The difference is, Bitfinex has no right to print currency legally. The central banks do.

So even though the inflation will still hurt the CBDC's and eat away your savings, it is still better than losing everything overnight.

I'm not sure if I'm thinking it right, but personally, the current stablecoins I've seen are focusing on fiat, specifically USD. The emergence of CBDC is almost accepted with many other fiat currencies. We have not only USD but many other currencies, so if the government does not accept it, the money flows into the market. Given that this will only have limited adoption, I am optimistic the field can reach new heights in the economy.

Stablecoins are not in the control of government but cbdc is, we all know government are not very friendly with what they don't have a total control of. On the other hand, I think cbdc will be quickly adopted and be successful over stablecoins, why, it is government approved unlike Stablecoins, most organisations, wealthy individuals and even none wealthy ones will prefer using cbdc than Stablecoins because it is official and government approved.
Same reason why crypto adoption is stalling, most people are more comfortable with anything 'governments approved'.

in this case maybe i won't be in both (long term) but for temporary trading like when the crush market is like now of course i will be on stablecoin to minimize margin when i have a loss but that's about it. I'm not really interested in them for now. Because there are indeed some coins in alt that are more worthy when compared to them for investment

People will trust CBDCs more than any ordinary stablecoin simply because they're backed by the full faith and credit of the government. I never liked Tether's shady practices as it manipulates the market for its own benefit. CBDCs would be a much better option, even though they will still be subject to the negative effects of inflation. The inception of CBDCs would mean the end of paper money for good. Everything else will be most likely the same as it is right now.

With increasing pressure from governments and central banks against crypto/Blockchain tech, stablecoins might cease to exist in the long term. Ultimately, what matters is decentralization. As long as decentralized cryptocurrencies exist, nothing else matters. Just my opinion :)

At least CBDCs won't be killed by governments but the bad thing is total supply of CBDC is unlimited. Governments can mint infinite total supply and I believe they will feel more easily to mint new supply batch in CBDC than print new supply batch in fiat currency. Minting CBDC from thin air is easier than printing new fiat currency.

Governments will try to protect their CBDCs and to do so, they will do more regulations on centralized stable coins. Companies that provide centralized stable coins will cope with more governmental regulations but I think they will still survive.

Centralized stable coins are still better than CBDCs because you will have public ledgers with which you can trace transactions, top holders, etc. With CBDCs, I don't believe governments will give us similar public ledgers.

I am afraid that government will start to attack these stablecoins or even non-stablecoins cryptocurrencies just to promote their CBDC. But it is already proven over time, especially Bitcoin, that it is more likely the power decentralization.
Stablecoins is much better for me especially now there are lot of stablecoins are popping beside USDT which is more transparent and decentralize.

We need stable coins, especially for the fact that they are the only ones that you can trade on cryptocurrency exchanges. Government CBDC cannot be traded on cryptocurrency exchanges, you do not get to see them anywhere there. So that is why stable coins are very important for us, because they make trading easy and you wouldn’t have to be withdrawing money to Fiat, you just easily convert it to stable coin and you are done.

And of course we all know that the government would try to kick against other cryptocurrencies, but this wouldn’t be in every country, because I know for sure that there are governments who are in support of cryptocurrency. But even if they do try, we know for sure that cryptocurrencies that are truly decentralized wouldn’t be affected. Only the centralized ones would be their main target and they would be easily to take them down.

It is still too early to say that CBDC will never be traded on crypto exchanges, since we do not yet see a fully functioning CBDC. But I can assume that they will definitely be listed on exchanges and at the same time will be popular with traders and investors.

IMO, I think it depends on the country's regulatory requirements if a particular country has already operated a CBDC I think that's very hard for both CBDC and Stablecoin to co-exist because both of them have the same purpose so I guess it adds more scrutiny on Stablecoin side to provide any proof or legality that a particular Stablecoin has truly back with and asset that have a stable value like Gold or US dollar. so CBDC can give a problem on Stablecoin in the future.

I think it is pretty much a given that once we see more CBDCs been released and governments push for their adoption that we will see an open war against cryptocurrencies in general as governments will argue their coins are better because they are under their control.

However while bitcoin can resist that assault due to its decentralized nature the same cannot be said about centralized stable coins which could easily fall victims of this push by the government and even disappear.

They are created and governed by governments so local governments will do their best support for their CBDCs.

The creation of CBDCs will be a hot trend because governments do see benefits from launching CBDCs with lower production, maintenance, distribution cost than traditional fiat currency.

Track the CBDC global adoption: https://cbdctracker.org/

CBDCs and Bitcoin will not kill each other. They need to mutually grow and play its role as motivation for the opposite to improve, get matured more and they will exist together in our society.

Governments won't be able to eliminate Bitcoin completely and Bitcoin won't be able to replace fiat currency or CBDCs completely if on Earth there will still be laws.

I do not think that the launch of central banks digital currency is going to affect stable coins negatively. I think that both of them can coexist, and moreover they are quite different in a way because stable coins are on the blockchain and being used mainly in the cryptocurrency market or community, whereas the central bank digital currency is more of like being used in the bank or issued by the central bank directly to the people.

So, the both of them are quite different a lot. There are always going to be people who would choose between the two, those who feel that CBDC is best for them would go for it, and people who don’t like it wouldn’t go for it, that’s just it.

The same can be said about stablecoins. Consider how Tether keeps creating new coins out of thin air on a constant basis. If the stablecoin had a finite supply, the issuer wouldn't be doing this in the first place. No scarcity means inflation, giving the power to the creator of the coin instead of the "hodler". What makes you think a CBDC will be any different? While CBDCs will have a limitless supply, they will be better than existing stablecoins simply because they'll have the government's endorsement. People will use CBDC more than stablecoins because of this. Who knows if stablecoins die after CBDCs are launched for public use?  Just my opinion :)

it all depends on the technology that CBDC uses. if they use blockchain even though it is ultimately centralized, this might threaten stablecoins. but if it doesn't use blockchain, cbdc is not a threat to stablecoins. there's not even anything to be afraid of about it. because cdbc will expand on different sides. so it can be said that stablecoins and cdbc will coexist without impacting each other.

I don't believe any of them: Bitcoin, altcoins, stable coins, CBDCs will die. There are dead altcoins, dead CBDCs but Bitcoin will be there, some altcoins will be there like Ethereum, Dogecoin, some CBDCs will be there.

If any stable coin dies, it is because that stable coin is bad, terribly designed or too bad security. Its death will not be caused by any CBDC.

Do you really think and believe that governments, central banks will be able and are readily to build up something better than Bitcoin or blockchain technology for the benefit of citizens? If they build up something, their reasons should be their benefits from governments to tax they can get from their citizens.

CBDCs short term can make hype on the market and create some panic among crypto enthusiasts but long term they don't have so much negative impacts. People will have multiple choices to choose for their transactions: Bitcoin, altcoins exclusively stablecoins, CBDCs and something new in future.

It is obvious, banks wants full control and honestly if I am the manager of the bank, I won't adopt any financial form that I don't have full authority.


It is more hassle for banks to adopt anything that they can't control.  Besides banks initially doesn't have access to the uncirculated USDT making them vulnerable to exploits from the one who created it.


They will probably co-exist.  Stablecoins are operating outside the bank system so they won't affect each other IMHO.

They can coexist, but depending on how they will be used, it will be a fight between them as well. Stablecoins are getting their attention from being main "getting out of crypto" method in the exchanges, which means that if you want to sell your bitcoins but do not want the money in your bank account for now, you will turn that into USDT and keep it there in the exchange, then when you want to get in, you will use that to buy crypto.

This is mainly how people use it, there is also futures of course. The moment we start to see CBDC's taking over that, and start being the main thing in the exchanges then we are going to end up with a big fight and it will "either or" situation.

According to economists, it is stable coins on a par with other cryptocurrencies that pose a threat to the country's financial system, and accordingly, such a threat will be for CBDC, which are a new form of money on a par with cash and non-cash. It is for this reason that national regulators will try to regulate stablecoins in order to limit their impact on the financial system, while CBDC will be introduced into the cryptocurrency market.

The future is still uncertain for the Stablecoins market, but whether the trend will continue to grow, I think we can answer that. It won't die in the end or it will co-exist with CBDCs because Stablecoins provide many advantages over fiat currency. Personally, I think bothStablecoins and CBDCs will have a purpose in the world of cryptocurrency. Stablecoins are more likely to be used as a trade-off between privacy and public access, while CBDCs will likely be used as a settlement mechanism by banks and large corporations.

I think the current stablecoin is better than CBDC, because stablecoin is one of the tokens that has very secure privacy and is the safest alternative tool to keep assets caused by the price inflation of btc on the market, where the price is equivalent to USD or money. Fiat is of course very helpful for its users, but I still have doubts about the development of CBDC because until now this token still does not have significant value, even though it is predicted that it will become a transformation of banking, but I think they still need time and processing to be able to compete with tokens that already have the full trust of crypto users.

Isn't CBDC just a discourse to be launched right, but even if it is launched and has full support from the government, I don't think they will easily be able to beat the popularity of stablecoins which have very strong fundamentals in the market. , I don't think they can grow side by side in the future, especially because CBDC is a new token, of course it takes time and a process to gain the trust of traders and investors,

Only decentralized stable coins have a chance of survival, centralized stable coins can easily be killed by governments at any moment and they know it, and the reason for this is simple, the coins are centralized.

Governments are experts at fighting centralized enemies as they can easily concentrate their resources and use any legal and illegal means to force a centralized institution to comply, but the same is not true for a decentralized entity, so if at some point governments decide they want to get rid of centralized stable coins they can do so with ease.

Exactly. Centralized stablecoins are doomed to failure as governments will do their best to help promote the use of CBDCs. There will be no major differences between the two (stablecoins vs CBDCs) except that one will be backed by companies while the other will be backed by the government. People will prefer the latter option (a CBDC) because it's much more legitimate than the former. We don't need to worry if CBDCs will take over the world since it was expected banks and governments would do everything in their power to avoid losing control over the economy. As long as decentralized cryptocurrencies exist, people will be able to enjoy true financial freedom. Who knows if CBDCs live alongside crypto for generations? Just my thoughts ;D

People are afraid that government will be forcing us to use CBDC but at the end of the day why wouldn't we? I mean think about it, stablecoins are not really that much of a big deal neither to me, and they are not really changing much of my life as a company behind it, the product is great and wonderful and it is loved by many but the team behind it does not matter to me.

So, if the government says stablecoins are illegal but crypto is legal, only CBDC is legal to use along with crypto, then it would not change a single thing in my life. I would just move all my money from stablecoins to CBDC and they will be listed on exchanges just like stablecoins are.

They can't since they are not the one that initiated it in the first place. Maybe due to the limitation of their control to stablecoins out there, that's why they can't back it up.
Pretty sure that they just wanted an absolute control over the whole stablecoins.
I had personally never went too much with stablecoins, but I don't think we should be worried in stablecoins in the future of CBDC's launch. It is the same thing as worrying cryptos future after bank cards had launched as well as digital payments out there.

If you think that a government can ban stable currencies and you do not have any issues rather than moving on with the stipulation, it wont be that easy as billions of dollars are held in these stable currencies and it is not practical to think that there will be a global ban. If they can ban stable coins they can control the rest of the markets that easily and it will have an profound affect on the entire cryptocurrency space as they will start targeting token projects next and it will continue like that.

The basic aspect all these governments want is to have more control over the cryptocurrency space.

I am not really sure what i should think about CBDC's. I mean if there will be a official digital USD or a digital Euro in the future then i would think that those are really safe and really always pegged 1:1 to their corresponding currency. The thing with the crypto stablecoins so far is that some of them are not really stable so far, like USDNeutrino which was at like 0,70 USD a few weeks ago and even though it is now again at 0,976 USD it is still more than 2% off it's peg, which is just to much in my opinion. In addition to that we can not really know if every stable coin that is minted is really backed by a real currency, for example we don't really know if the company behind USDT can back bevery Tether that they are minting.

You are right when you say that in terms of functionality not a lot may seem to change, however stable coins have a huge volume and market cap, so if many governments at the same time announced their desire to get rid of them then it is to be expected those coins will crash hard.

So a lot of people would lose their money in that scenario as I doubt many of those coins actually back their tokens in a one to one relationship to their fiat counterparts, also your privacy will become heavily compromised by the use of CBDCs and maybe in the future the government will forbid to buy cryptocurrencies with them, limiting what you can do with funds that you planned to use to invest in this market.

Stable coins will forever remain the best, because most of them are being backed up by the real country currency. CBDC can't take over the market because it's going to be centralized and anything that's monitored can't go any far in the crypto space because it's against what the vision and mission of crypto currency stands for.

Actually nobody knows if the stable coins are backed by anything. Nobody audits those tokens. Nobody ever did. They are (the issuers of those stable coins) probably running a fractional reserve banking scam with the money they don't have and that's a very dangerous game. Everything will be fine as long as people don't cash out large sums and buy real stuff like homes, cars etc. but once they do, the whole stablecoin chain will collapse.

As we know, central banks in various countries have announced the intention to launch various volations against digital currencies. And can be said as the first step towards the world where all our money is in the digital world.

But many people do not know this, ok....we who often dive in the crypto world, know this, but for those who do not know, whether they believe it, although literally the development of the world of stablecoin is a cryptocurrency that has price stability that can be used as a digital world asset and as well as the fiat.

in my opinion stablecoin is not only issued by the government, some are launched or created by private companies with underlay installing cash as collateral.

As in the first question the creator of the discussion, about stablecoin, in the tether sector is no longer a new thing for us, regarding the big influence and has achieved success in the financial sector of fiat money submission and gain large profits, therefore many new events have sprung up or new style and coins Only CBDC, which applies the same steps as tether, basically only the advantage that becomes the main patron of each launch, is none other than a little different concept, the stablecoin strategy is nothing but providing convenience for balanced asset storage.

And all of that we can be a part of minimizing the losses of the cypto assets that we save, a lot of new stablecoins have sprung up, but according to saving my writing language, it feels hard to compete, maybe because of the influence of the influence that is already strong in the crypto world, but the new stablecoin is in making a competition Against enthusiasts, but the length of time.

Along with the developments and strategies and brilliant concepts, we just wait how the new CBDC power stablecoin.

It should be borne in mind that states are now issuing their digitized currencies (CBDC) not for the purpose of developing cryptocurrency. They do this out of their own interests, namely to improve the efficiency of their cashless transactions. Private stablecoins were created mainly to provide convenience when working with a decentralized currency, and governments create CBDCs to improve the efficiency of their centralized financial system. How private stablecoins and state coins will coexist depends largely on the states. After all, private stablecoins use fiat for their work, and states can prohibit them from doing this.

I'm sure behind the stable of unofficial coins from the world's central banks, they will feel stifled when they can't grasp the flow of money wherever it comes from, if USDT can't be controlled well the banks will prefer to get another way by making their own coins ready to compete with other countries another stable coin. Unfortunately USDT has earned a more privileged platform in the cryptocurrency community, our trust is so high in USDT.

Some countries that want absolute power over their citizens will use CBDCs, the other will use stablecoins. If stablecoins are regulated they can act as CBDCs but will have more reach because anyone in the world will be able to use them. For the USD, that's a better solution than a closed CBDC, because it can still remain on top of the economic pyramid. These stablecoins will run on top of L1 blockchains, like Algorand, XRP, and ICP.

I believe stable coins will have tough competition if traditional banks launch their digital currencies on blockchain. Although we know that stable coins have been trusted by many people for a long time but we also know there are limitations that stable coins cannot do when compared to coins related to bangs. For example, if it concerns the liability of the customer's assets, perhaps the bank will have the upper hand in this regard.

Of course they can if they want to. But I don't think they will do it anytime soon, because there are a lot of obligations here, it's a matter of security. And in many countries cryptocurrency has not yet been legalized. Then there are the various political reasons involved.

I don't think it will be completely extinct but yes there will be came out a competition and I think it will be good for us.

Over time, the only alternative for CB DC will be decentralized stablecoins, which will be provided not with a fiat dollar, but with cryptocurrency. Thus, there will be a real separation of the cryptocurrency and the real world, in which everyone will be able to choose what suits him better - decentralization or centralization.

If the option are only those both, I will always pick CBDCs, and I think most of people too. If Governments actually release CBDCs, the Stablecoins company need to found added value to their product, or else they will just die. Why you would buy a dollar from an unauthorized company when you get it from the official, the official is absolutely more secure.

To begin with we do not really know if stable coins are backed in a one to one relationship, tether the most powerful stable coin has faced accusations this is not the case, and there are reasons to believe there is enough evidence that at least during a time this was not the case.

Second, CBDCs are centralized but stable coins are centralized too, and if anything by holding stable coins you are adding and additional risk that is not there if you held fiat, so even if the playing field was fair it is difficult to believe stable coins will remain unaffected by CBDCs.

That's certainly true, mate. It's likely decentralized stablecoins will take over the industry, as government pressure mounts over centralized alternatives. Once CBDCs are launched, there will be no need for a centralized stablecoin backed by a separate entity. After all, CBDCs will serve the same purpose as any ordinary stablecoin. Even though decentralized stablecoins will be around with us for a long time, I don't think they'll be largely adopted by people worldwide simply because they're unable to maintain their peg for a long time.

Consider how UST (Terra's stablecoin) lost its peg because of the massive downfall in BTC's price. Not only UST, but other decentralized stablecoins like Neutrino USD and NuBits have experienced the same issue in the past. If this persists, people may only cash out crypto directly to a CBDC to enjoy the full benefits of a stable currency. Ultimately, it's all about utility. As long as crypto remains useful, nothing else matters. Just my thoughts ;D

As I wrote earlier, if a decentralized stablecoin is tied to a cryptocurrency, then it will not react to changes in the value of the cryptocurrency to the dollar. Thus, for example, if UST was equal to 0.001 BTC, then this value will be maintained regardless of the current value of bitcoin. But apparently for this, fiat must be completely compromised so that the binding to it is no longer used.

I think tying stablecoins to a cryptocurrency is a bad idea. Collaterizing the stablecoin with more than one cryptocurrency is the way to go. That is if the stablecoin in question is decentralized. For centralized stablecoins, everything will depend if the issuer is backing the stablecoin itself with real world reserves. There are many centralized stablecoins that are shady because of their inability to prove their Fiat (USD) reserves. But there are some that are truly legitimate as they're regulatory-compliant.

With the launch of CBDCs, there would be no reason for centralized stablecoins to exist. That's because stablecoins will serve the exact same purpose of a CBDC. The only difference is that one will be backed by corporations (stablecoins) while the other will be backed by mainstream governments (CBDCs). As long as we have decentralized cryptocurrencies, nothing else matters. Just my thoughts ;D

Although that CBDCs will have higher chances of global adoption, but they are fully centralized and we don’t have the full control of our funds there. As for the stablecoins despite that there are no proven backers there because of being prone to de-pegging like the UST and USDT, at least these stablecoins are not fully centralized. They’re a mixed of centralized, semi-decentralized or fully decentralized.

I haven’t tried using CBDCs yet because it was still under pilot testing here in the Philippines, but got no problem with stablecoins that I have in both in Binance, hardware and non-custodial mobile wallets.

Well, I'm almost certain that CBDCs will replace stablecoins simply because they're backed by mainstream governments. The LUNA/UST fiasco has brought up the attention of regulators worldwide. It should only be a matter of time before stricter regulations are implemented, greatly diminishing the growth of stablecoins in the mainstream world. Once CBDCs become a reality, it's possible governments will declare stablecoins illegal in order to force people to stay within the banking system. Only truly decentralized stablecoins and cryptocurrencies will survive because of the way they're designed.

What the future holds for the entire crypto/Blockchain industry is a mystery. As long as governments and crypto industry leaders work together, mainstream adoption for crypto/Blockchain tech will reach new heights. Just my thoughts ;D

Stable coins have drawbacks on how they back their values with reserves. If they use algorithm and token-minting mechanism like UST and LUNA from Terra, that is terrible. You can not create a stable asset which is backed by a basket of all volatile assets. Even you add 100 volatile assets in a basket, it is still volatile. It is like you open a margin position on exchange, which is backed by a collateral from 100 altcoins. Is it safe for your collateral from liquidation ?

CBDCs can be safer because they can be backed by physical assets like fiat currencies or gold bars but we can not verify their reserves. Moreover, what happened in Venezuela with their Peso fiat currency is an example that CBDC from small nation likely weak and vulnerable to financial crisis nationally or globally. Recent months we see what happened with Russian rube and it is another example.

However if I have to choose between CBDC and stable coin, I will choose CBDC from big nation like USD.

I don't think stablecoins can ever be combined with cryptocurrencies because the differences between the two are very much different.
Hopefully the launch of the CBDC will have a positive impact on the cryptocurrency market so that everything goes smoothly as we want.

in my opinion the presence of stablecoins to maintain the value of assets owned by traders. and if it is true that later there will be a CBDC (Central Bank Digital Currencies) then in my opinion it will not affect other stablecoins. because all that exists is about convenience and transaction costs as well as speed in transacting. and I believe all asset owners have their own judgment and trust to choose the available stablecoins.

If you use a CBDC you need to trust just a government issued that digital currency, if you use a stablecoin denominated in that currency you need to trust both the government and a private organization issuing a stablecoin. As there are no real benefits of using something less reliable many and probably the majority will chose to use CDBC instead of stablecoins.

The best option is bitcoin anyway as you don't need to trust anyone.

Only collaterized stablecoins will be able to maintain their peg as they're backed by real world reserves (usually Fiat currencies like the US Dollar and the Euro). The rest are simply doomed to failure. CBDCs are more trustworthy than stablecoins simply because they're backed by the full faith and credit of mainstream governments worldwide. Stablecoins are issued by private companies that are subject to regulations imposed by the government. They have some restrictions, unlike traditional Fiat currencies.

I'm pretty sure people will choose a CBDC over a stablecoin anytime because of the reasons mentioned before. Things are just getting started so it's going to take a while before we're able to tell whenever stablecoins will survive after the launch of CBDCs or all the other way around. Just my thoughts ;D

The existence of current stablecoins in the future will depend entirely on the regulatory authorities of states. Any state has the right to prohibit the use of its currency by others as security for private and commercial stablecoins.
It should be noted that the current private stablecoins can be subject to various abuses. If something unforeseen happens, the enterprise that organized the operation of this stablecoin will declare itself bankrupt and all holders of this stablecoin will lose their money. The state is behind the CBDC, so this cannot happen here. This is the advantage of CBDC.

Although what you said is a fact that many people who are happy with Stablecoins need to know at this time, but for conditions like now I think stablecoin users at this time are still greatly helped by not losing the amount of assets they already have, despite things unpredictable as you said it also needs to be understood so that everyone does not always depend on stablecoins under any circumstances.

You can never know if any exact stablecoin is collateralized by any other asset or not. Of course they can say that they do keep those assets on their accounts and show audit reviews but we all know that all that can be compromised. You can only trust that third party that they will not cheat you but can't  have any reliable guarantees, unfortunately. That's why I don't believe any stablecoin.

CBDCs have better safeguards than stablecoins themselves. That's because they're backed by the full faith and credit of the government. Stablecoins are issued by private companies, but their prominence is not guaranteed for the long haul. Bankruptcy, or even major hacks, could put stablecoin holders at risk. Authoritarian governments will surely go against alternative currencies, forcing people to use CBDCs of their own.

I wouldn't worry about either of the two types of "digitized" Fiat currencies, because crypto is all about decentralization. Using either a stablecoin or a CBDC will make you subject to manipulation and corruption by either central banks and governments or the issuing company itself. With truly decentralized cryptocurrencies like Bitcoin or Ethereum, you are in complete control. As long as they exist, we don't need to look anywhere else. Just my thoughts ;D

That's it! Not all understand that "stable" coins are not true crypto: they pretend to seem to be crypto but they are centralized projects that have much less responsibility then even banks. And I think that if someone wants to use stablecoins they should understand with what do they deal. And I totally agree that true crypto is much more reliable and safe.

Old is gold! BTC is still there, while all the other claiming to be better than BTC has collapsed or haven't even made it to the trading market.
USDT will be the same in the future too. Old will stay, while new will perish. People tend to adapt to old things quickly. There's a trust factor in that.
Anything they try, they can't beat the USDT

Governments have enough power to beat any such centralized system: forbid its usage and offer an alternative guaranteed by government. As monopoly on violence is in government's hands no centralized company can oppose it, only true decentralized. Bitcoin's rate can go down and then up and bitcoin will still be a reliable project, any big problems with a pseudo-stable coin will kill it entirely.

That's because people don't take their time to research all about crypto. Instead, they make their decisions based on pure greed or someone else's opinion. Governments know this so they will keep pushing false propaganda and misinformation in order to drive as many people into their new creation (CDBCs) as possible. Only smart people will use decentralized cryptocurrencies over CBDCs in order to experience true financial freedom. While stablecoins are nearly-identical to CBDCs, they often come with risks. The issuing company can either run away with the money, or even face bankruptcy, putting stablecoins' holders at risk. The same cannot be said about a CBDC because it has the full backing of the government and the central bank.

For this and many other reasons, I think CBDCs will render stablecoins obsolete. There's no need to worry about this since crypto is all about decentralization. As long as decentralization wins, nothing else matters. Just my opinion :)

I guess my opinion will be not so popular on a bitcoin forum but I think it will be a positive change when CBDC'll replace pseudo stable coins, it will lower the risks for those who don't want to make own researches. It is easier to understand that CBDC is a fiat currency then to understand that a pseudo stable coins is not crypto and is less reliable then fiat currencies. CBDC will never replace bitcoin because centralized decisions always have pitfalls.