Bitcoin Forum

Stablecoins are crypto assets pegged to the value of Fiat, bringing people the "best of both worlds". The most popular stablecoins are often pegged to the US Dollar, since it's the world's reserve currency. Some of them comply with regulations, further legitimizing the industry as we speak. With all of the benefits stablecoins provide, Fiat's prominence could be threatened in the long run. After all, it's much faster and cheaper to use a stablecoin than a credit/debit card. People could stop using Fiat currencies like the US Dollar or the Euro in exchange for a stablecoin of their choice.

This makes me wonder, will stablecoins replace Fiat currencies in the future? If not, why? Is there a possibility governments will adopt stablecoins as their own instead of launching digital currencies from scratch? Your input will be greatly appreciated. Thanks in advance. :)

It will only replace fiat IF the government will take full ownership of the company minting/burning these stable coins. We're talking about a legal tender here and not investment assets like BTC that can be regulated (using exchanges). They must have full control.

We've already heard of China with their own CBDC and other countries are planning/developing their own.

It is true but again can it be considered as stablecoin if the government take its full ownership? I guess no, the characteristic of stablecoin is its reserve asset which is fiat. without its reserve asset, it does not fit to be called stablecoin instead it will become another fiat.
given that fact, I highly doubt stablecoin will replace fiat. it will coexist as it is now.

There's a lot of topics before that tackles about cryptocurrency replacing fiat money which I still believe that it wont happen even if we introduce the most stablecoins because the government wont allow this kind of network, there's no secret money here and this is a big NO for the government so this wont happen.

Any country that agree with crypto technology will consider printing their own stablecoin as a fiat alternative. The growing adoption and knowledge of crypto in society will really help bring this idea to fruition, but I'm not sure if there are many people interested in having a centralized crypto asset. I am sure the government has been thinking about this opportunity for a long time, but it need special consideration and must get support from all sectors. Fiat will continue to exist even if stablecoin are created.

I don't think this going to be very likely. While many people are investing in stablecoins and find them very attractive, the governments will be very reluctant to give away all their power easily. We know that the digitial USD and EUR are coming, so it seems more likely that the central banks are going to push and promote their own currencies. Having full control over the money supply and being able to print more money whenevery they please is the key to financial policies in todays world.

IMHO, I think it won't replace fiat even in the future, but what I believe is fiat and Stablecoin can co-exist together in the future because fiat was the government own and introduce currency thats why it's not that easy to replace while Stablecoins are cryptocurrencies that working on different blockchains it's completely different in terms of technological application but both fiat and crypto Stablecoin are meant for financial services and usage.

FIAT's functionality as a digital payment instrument is already happening. although what is happening now is to transfer FIAT from one bank to another bank. or from one address to another.
stable crypto as a payment realm is very possible, but to replace FIAT in the future will take a long time depending on market acceptance and crypto users.
Currently, fiat is still considered the easiest and legal transaction tool.

There's no way to replace Fiat currency this may be old but it is still functioning, not unless we goes to full digital like everyone uses digital money. We have to accept this fact, cryptocurrency was not made to totally replace fiat money, it was made to provide greater options to people and I'm sure every country wont allow this to happen, banks also have the same perspective. Cryptocurrency will be better in time, and the adoption will start to happen but still there's no chance that it can replace fiat.

I have mixed feelings about this.
I mean we already have credit/debit cards that could almost do the same in transaction but still people continue to use fiat currency most of the time.

There's high possibility that government will adopt stablecoins but it won't replace their regulated currencies, as people got used to it already.
Not everybody have the proper education to even use technologies properly, considering how many people from US/UK get scammed by tech supports by telling them random stuffs that don't even make sense and slapping it as a "technological term", although I might be going a bit off-topic here. :D

Are you seriously asking if the government have fiat (and other liquid assets) to back up each unit of stable coin? Where do you think these companies got their reserves from? It's from the same government that can easily print trillions of fiat in an instant.

Really? Do you think that they don't do that in cryptocurrency? For example, take the USDT token, how many tokens have already been issued without any collateral, each time being in the center of scandals, but this does not prevent them from being number 1 among stablecoins.

Who are you asking?

We are talking about replacing the fiat which means stablecoin becomes the next fiat.
do you think fiat will still exist once stablecoin replaces it? I am asking you, what is the different between fiat and stablecoin?
we can speculate they do not have enough reserve to back up each unit of stablecoin but that does not mean they do not have any liquid assets at all. how can it be called as stablecoin if it does not have a target price?

CBDC that's released by central bank and approved by the governments maybe, but a stablecoin that's run by a private company I very doubt so, the government if feel threatened could easily ban the stablecoin and it's already unusable in that specific country. It's just overall very hard for a stablecoin to "simply" replace fiat due to regulatory problem but if it's to be used internationally as an alternative, maybe.

Stable coins are deposited by FIATs in banks and help value Stable coins. If one-day stable coins replace FIAT, what will be the role of banks? I think that currently, the relationship between stable coin and FIAT is very suitable. Everything will go on until governments make an official announcement about crypto issues.

The government will prefer to issue their own stable coin called CBDC, I should remind you that there are some news that said if some countries were feeling worrying of stable coin will be dominating the world and that's why UK wants to clear the stable coin regulation as fast as possible. Stable coin has possibility to replace fiat as it has the same value caused by stable coin pegged with fiat.

I recommend you try to read some news about stable coin regulation. So many countries are paying their attention on this.

Nope, they will never replace fiat because the value of stable coins itself pegged with the fist money means they need fiat money for those stable coins to exists. And also governments has no reason to accept stable coins over their fiat money because there is no difference other than the blockchain technology.

Why government needs to give control of their fiat money to a private company?

Regulations or legitimation does not change the fact that they are based on USD. As long as they are backed by USD, they can't replace USD. Government will never let this phenomenon to happen.

Moreover, crypto users love to avoid paying taxes or become anonymous. If stablecoins replace Fiat, there will be a rule which centralized the whole market and perhaps real crypto enthusiasts will abandon stablecoin forever. Diversity is necessary for further development

It's stable coin replacing the fiat as a currency/countries legal tender/preferred medium of exchange.

Fiat can act as a reserve. In a way, each stable coin is backed up by the Government that issued it if it will remain pegged to fiat.

Don't limit it to fiat like USD. Apart from what I said above, stable coins can also be pegged with minerals. It can be valued as xx ounce of (name of mineral).

Cost to transfer USDT now: $20 at the very cheapest and slowest speed. Average is $40.

So the world's most popular stablecoin, and many other less stablecoins all using Ethereum will cost you that much.

How can it replace fiat currencies which are mainly free to transfer to each other (except cross border).

I support crypto but it's not yet ready.

Stable coins will never replace fiat currencies in the future unless it is being issued by the government themselves.  I always believe that the finance system is moving forward to digitalization but I never think that the current stablecoins issued by non-government organization will be able to replace fiat currency since finance is being monitored and approved by the government and without their consent and approval it won't go far from where it is right now.

True.
It will take out the corruption.
So it will be difficult to push it forward even with the highest supported senator backing it up.
Maybe it will just be implemented for private companies. There is a simple reason into how the government could escape such intrigues with why they wont accept it.
Use the poor. Capabilities, introductions, learning, etc...
Reasons of spending more money by teaching it to the poor and providing the tools (i.e. smartphone, computers)  

Stable coins are crypto assets, while FIAT is what the government create.

This is the set up of the world.

Government regulate everything, even crypto, so there's no way they will allow FIAT will disappear if they can regulate crypto.
Whether we like it or not, crypto will always be na alternative currency, it will never be close to FIAT.

Indeed, stabelecoins can be said as a copy of Fiat and of course, the copy will only be used in certain places that accept it as the crypto world, some e-commerce sites but in the end, when bringing copies and comparing them with the originals, Fiat is still supported more by permission and authorization from the government. Maybe in the future, the government will have a better view and allow stablecoins to go hand in hand with fiat, but at least they need to manage everything before they are officially announced.

There is always a possibility that can happen, because cryptocurrency always gives a lot of surprises every time it develops, maybe in the future every country has a stablecoin, and this coin will later become a means of payment in that country or maybe the world.
I am optimistic that in the future many countries will make their own stablecoins because many large companies have started making their own coins or approving payments using cryptocurrency.

Yes, it's just about time and awareness

The government prefers something that is at least safe for public use and will certainly keep threats from associations or individuals related to official digital money making. Creating new stablecoins or using existing ones still takes the same time and energy to start being adopted by everyone on earth. This is because the total% of cryptocurrency users is not high when compared to fiat currency users.

Various examples of revolutions appear clearly in our view. Everything on this earth will definitely be upgraded and changed with newer and beyond limitations. We know, in the past the telephone was only used to talk to other people in different places, but now we can use smartphones to make calls, send money, shop, play games, show directions, take pictures, calculate heart rates and much more.
So there is no other reason to reject blockchain-based digital currency which has stable value. This will certainly make it easier for all of you to carry out activities and do business.

In an eventual fall of the world economy yes, it is evident that the stablecoin will replace the FIAT money, although now they are taking their precautions, since China is a country that has launched its stablecoin, they even feared Facebook's Libra because according to them Libra of Facebook was the copy of its stablecoin.

On the other hand, many people in the future will come to trust stablecoin projects much more than their own stablecoins such as the dollar, the euro or the currencies of their local countries, because the economy tends to be inflationary.

In the future I believe that the FIAT currency such as the dollar, the euro, among others, will be eliminated and will be replaced by gold, whether physical or digital, stablecoins anchored to gold and / or precious stones, cryptocurrencies and bitcoin, as the world goes it is likely to be so.

The thing is, even cbdc's that many countries are on the verge of launching isn't even intended to replace Fiat currency, it's just going to be another "digital Fiat" currency for them, just one that they are going to control and manipulate as they deem fit, which leads me to think that it's somewhat impossible for stablecoins to replace Fiat, is there a way the government is going to be able to solely control this stablecoins? And 'print' more when they feel like? If they can't then how possibly can they adopt it, what our government cares most about is control, and that's why quite a lot of Bitcoiners are in the BTC network cause they get to 'be their own bank' and control their funds themselves without the government being 'in the picture'.

With this coronavirus comes to us, digital transaction going up in term of retail transaction. And we need this blockchain. I think stable coin could probably replace the papper money someyimes in the next few years. People now hold their wealth only in their phone. Easy to use and faster.

CBDC will replace fiat, not the ordinary stablecoins. Countries are not ready to use money they cant control

Actually you got a point. But this is for centralized aspect. I hate the fee when using stablecoin usdt on cex since the fee is super high, but when you used decentralized wallet to process transaction you will pay via gas or eth gwei. Sometime its high sometime its low, but it didn't reduce your receiving stablecoin but only bear the appropate fee on the network unlike cex that deduct $20 is such a pain isn't it.

This is so unlikely, governments will not allow a currency they do not have full control over in place of their own.
Perhaps in the future stablecoins will be a part of the world's finances, but its replacement of fiat currencies is unlikely.

With the emergence of CBDCs, will governments try to reduce the role of stablecoins?

In my own honest opinion, I think it will be difficult for stable coins to replace fiat, but it not impossible, it can happen but will take a great amount of time before this happens if it ever will, and another thing am thinking is based on how greedy our government is, they will hardly accept any currency not created by them, this is to say that they will first of all create their own stable coins for the country citizens to adopt, this will give them control over every ones assets, they can only look the way of adopting the current stables coins we have in crypto if the citizens refuse to recognize the government owned stable coins, but like I've earlier, this is possible but very difficult and will take a lot of time before it can come to pass if ever it will happen, this is just my opinion.

in my opinion it is not that easy to replace the currency of every country using cryptocurency like stablecoins because usually governments prefer to use their own currency so that the value of their currency remains stable in the world market

I think in the future stablecoins will coexist with fiat currency but it cannot replace fiat currency.
While stablecoins have many advantages over conventional currencies, they are often privately owned, and governments will not allow a privately owned currency to replace their currencies.

ROFLMAO.. and people are talking about USDT replacing fiat currency. To replace one asset with other, the latter should be having a lot of advantages and merits compared to the former. If we compare fiat currency with stablecoins, I don't think that this holds true. I would even say that stablecoins such as USDT are inferior to fiat currency. In case of USDT, I can't trust the exchange which creates this token (Bitfinex), as they have been accused of fraud using the reserve funds of USDT.

This is not even just difficult, but impossible by definition, because stablecoins themselves are tied to fiat currencies in value and appeared in contrast to the very volatile classic cryptocurrencies. The modern model of public administration includes fiat currencies as one of the elements for the functioning of the economy and the influence of government bodies through the issuance of fiat currencies, so states can still allow the parallel circulation of fiat currencies and stablecoins, but the replacement of fiat currencies with stablecoins is out of the question.

Despite the existence of Internet, it does not totally replace the Newspaper and U believe that will also be same for Bitcoin and the bank

Internet doesn't replace the newspaper instantly but this time i rarely seen that people are still using the newspaper to get the latest news and people keep up to date with their gadget.

Stable coin will not replace the fiat currency as fiat already used to backed the stable coin and this will not be possible.
it's not the same like internet that was making newspaper disappear

Actually i dont care about this idea because governments themselves always avoid talking about the crypto generally and most of them dont even know about the existence of such stable coins especially in the 3rd world countries...bitcoin is all what they know about and they always try to make people think that it suspicious and dangerous

But the selling of news paper also has significantly decreased even SMS are now being replaced by messaging app, however stablecoin replacing fiat sounds impossible but actually it could happen if each government creates their own version of stablecoin instead of digitalizing their currency using centralized system and bank transfer could easily be replaced by stablecoin if the government approves. it's just matter of the government decision actually.

A stable coin hasn't been created by any government. It's just a centralized cryptocurrency claimed backed by USD. But most stable coins don't have transparency if really backed by USD or not. I don't think in such as situation stable coin would be replaced for fiat. Rather than there is the possibility that the government would create a national stable coin. But I don't think it's possible to remove fiat currency totally.

It's not even an idea but it's happening now. Crypto is not so popular among the people from the 3rd world countries caused by these countries' lack of infrastructure. Crypto is not even become a massive trend on the major countries as well.
The governments are feeling worried about the existence of crypto can disrupt fiat money as the main market for the bank to make its domination.
Once decentralized will become a very popular thing and a stable coin has a chance to replace fiat money.

Existing stablecoins are mostly either privately owned or created by a specific commercial entity. If they go bankrupt or disappear for any other reason, its holders will lose their money. Therefore, they are not suitable for states. States will only issue and use their own central bank stablecoins, that is, their digitized national currencies. They will replace conventional fiat currency, but they will not completely replace it. Neither the state, nor a significant part of the population will be interested in this.
Going forward, it is possible that governments will ban private and commercial stablecoins.

The government won't replace fiat by any other form of money. The only thing they are going to replace by launching CBDCs is cash.

It won't happen, because fiat currency is what we use from the start until now, while stable coin can be use only to those who embrace digital currency which is more on the private sector. There are many things need in digital currency which cannot be totally use by many people because it needs internet connection, gadgets and other thing. We cannot deny the fact how useful and hassle-free using it.

Governments have two options to bring Fiat into the digital realm. Either they create their own CBDC from scratch or adopt an existing stablecoin as their own. If they decide to take the latter route, the issuer of the stablecoin is going to have to give the government full access to it. Mass surveillance can be achieved easily this way. Of course, starting a new currency from scratch gives better control and flexibility to both governments and central banks. We're going to have to see how everything unfolds in the future as crypto/Blockchain tech continues to grow in popularity worldwide.

Believe me, stablecoins won't be able to last for long once governments launch digital Fiat currencies of their own. These entities will prevent companies from launching stablecoins to the public with heavy-handed regulations. After all, governments don't want to lose control over people's money. The only exception would be traditional cryptocurrencies like Bitcoin and Ethereum, as they're decentralized by design. Which is why, I believe the stablecoin trend will be one that will last for a very short period of time. Just my thoughts ;D

Well to most citizens stable coin might replace fiat especially for crypto lovers, but it will be very difficult for stable coin to replace fiat worldwide because not all countries accepts crypto and currently speaking all most 100% of most countries government won't want to replace thier fiat currency with a cryptocurrencies! It sounds very much impossible, government likes being in charge, knowing fully well no one controls crypto it will look as a threat to them and also all countries currency represents its country by bearing the country's name e.g USD which is United state dollars, this is another reason why government will not allow crypto to replace their fiat currency.

stablecoins replace fiat of course can happen in the future, but in my opinion it will not happen in the near term, because the wider community still needs longer adaptation and there are still very many people who do not know what crypto is.

There will always be a possibility considering the innovation and revolution of the technology all over the world. The only struggle that may be faced by the stablecoins is the regulation of the government being granted to them. We all know that crypto is a decentralized currency, they cannot be controlled by government sectors and associations making it much better compared to fiat. If in the near future, things will get settled and agreed upon, maybe there's a chance that stablecoins will slowly dominate over fiat all over the globe and by that time, it could either be the economy will get better or would end up worse. We still have no idea where it may lead us.

I actually hope they do. I believe it's better to run fiat on public, transparent, decentralized system/network than on private, opaque and centralized one. Most of the countries can have their own stablecoins. The governments will still have the legal power over the stablecoins, but there will be more effective checks/balances or accountability due to increased transparency offered by truely decentralized and public system/network.

I think stable coins will only replace Fiat currencies once the government has full control over these coins otherwise it will not. The government will not let these coins generated without their regulations hence it is more likely impossible. What will the government do to counterpart this is stable coins is making their own digital money which I think China's CBDC is trying to do. Any crypto coin whether it is stable coins or not this will not remove the fact that this will not replace Fiat, they could coexist yes but replacing each other I don't think so.

I am sure that the government will issue its own national digital currency, instead of using the already functioning stablecoins. Centralization has many advantages for the government, and the main reason that governments will use CBDC is that it will allow emission control.

Doubt stablecoins will replace fiat. Fiat is too deeply rooted in the world, cash is something that will always be in value.
You cannot cash stablecoins into anything other than fiat. Obviously, fiat will try to change its shape, perhaps even in the form of stablecoins, but it will still be the same fiat.

This is the most likely path governments will take to end paper money once and for all. A digital ledger controlled by central banks will prove to be extremely convenient for mainstream governments. Imagine what these entities will be able to do with your money with a system they can control from top to bottom. It'll be possible to freeze, delete, and deny account access with ease. The new Fiat system will bring increased surveillance and the end of privacy as we speak. While stablecoins provide a certain level of freedom, they might not last for long as governments crackdown on the industry. Only truly decentralized cryptocurrencies like Bitcoin and Ethereum will stand the test of time. Who knows what the future will look like with CBDCs and crypto in play?

Nonetheless, I believe that stablecoins are nothing more than experimental grounds for a future version of digital Fiat. Once CBDCs are launched to the public, expect stablecoins to go all the way down the drain. At least, you'll be able to enjoy the benefits of stablecoins while they last. As a last resort, you can cash out crypto to real Fiat using any exchange of your choice. No matter if stablecoins survive or die in the long run, the crypto/Blockchain industry will carry on as usual. Just my opinion :)

Agree with your point. Fiat will try to evolve. If it remains the same, it will die. And the government will not let that happens. CBDC is being worked so as to replace the tradition cash but it may take time. Up to now, the only country is testing this subject is the China. They are really good in centralizing people and they believe that CBDC is the tool to fully control everything. I feel that there is no freedom or liberty for the citizens who live here but as far as I know, the Chinese still enjoy living while being governed by such dictatorial government  ???

They don't have any choice the dictatorship are more strong than the will of the people to live normal, with such tool the  government
will continue to dominate the people. It's tough to move away from this but those who lives there are all needs to follow whatever the
government decide them to do.

There's no such freedom as what it will applies also with stable coin that this leaders will implement to their people.

It must be done this way, but not such as the USDT, it seems to me that our states will make their own crypto rubles, dollars, etc. and we will use them.

This way they can begin to control some of the cash flow

But aren't stablecoins the evolution of fiat already? I think it's not possible to get rid of paper money, but there is a clear tendency stablecoins are going to become more popular against fiat usage. And in fact, they are almost the same thing. They vary in the form, but the product is the same.

In my opinion, a very correct and detailed answer to a question that the OP asked others, but which he answered himself. Indeed, at the moment when CBDCs become widespread, they will displace the existing centralized stablecoins from circulation, because there will be more trust in them. But decentralized stablecoins will gain popularity among participants of the cryptocurrency market. Just my 5 satoshi)

stablecoins such as USDT do contribute greatly to the crypto world, but if stablecoins replaces fiat, it will be very difficult, but no one can predict this, the possibility of course is there, but it takes quite a long time

Decentralized stablecoins will be the only ones that will stand the test of time. The rest will go down the drain once governments launch digital currencies of their own. People will still be able to enjoy the benefits of Fiat by cashing out their crypto holdings into their own bank accounts. Stablecoins are only useful for day traders looking to make a quick buck without the need to go through the hurdles of creating/managing a bank account. As long as crypto/Blockchain tech remains decentralized, nothing else matters.

Nonetheless, it seems unlikely stablecoins will replace Fiat anytime soon. The only way that will happen is if governments adopt stablecoins in their entirety. But the announcement of CBDCs tells us otherwise. Once centralized stablecoins come to an end, we might see decentralized alternatives rise like never before. This means greater liquidity for stablecoins like DAI and USDJ in the future. Rest assured that with or without stablecoins, crypto will be here to stay for a long, long time. Just my thoughts ;D

Stablecoins may replace fiat when 90% world population will be adopting cryptos; I guess that would take long time as so far less than 10% of people world wide aware of cryptocurrencies and its usage.

People were discussing like bitcoin will replace bank/gold like that but I never imagined a scenario where stablecoins to end the traditional banking system. Because, when we talk with respect to bitcoin, it seems possible as bitcoin got the power and innovation whereas for the satblecoin case, I feel like it is missing innovation and power. So, stablecoin to become a mainstream usage might take more time than we could estimate.

replace? does not seem. but if it is an alternative payment, then the opportunity is quite big. We know that using cryptocurrency requires a fair amount of knowledge, it's not easy enough to use. let alone parents who are not familiar with technology, my peers who are just getting to know this find it quite difficult. Moreover, the facilities and infrastructure are not fully supported. and if there are technical problems, such as no internet network etc., it will definitely be difficult, right?

I made my USDT withdrawal on ERC-20 chain and the cost is $40. That is crazy expensive and I don't like it but I don't have any option to choose and reduce the withdrawal fee. I stored my USDT on an exchange years ago and it has low trading volume now. They don't provide TRC-20 chain and I can not convert my USDT to altcoins. The spread on their altcoin pairs are big and it can not help me.

Finally I have to withdraw my fund with USDT on ERC-20 and afford the expensive cost.

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They won't replace fiat currencies.

Fiat currencies will have strong competitors, stable coins, bitcoin and altcoins but they won't disappear completely. Those currencies (bitcoin, altcoins, stable coins, fiat) will exist together. The cake portion for fiat currencies will be taken over and shared more by other currency types but fiat won't be killed.

My capital has three of them: bitcoin, altcoins, fiat and stable coins. I reshuffle their allocation with time but never use a single type to store all of my fund. It is very risky.

if the stablecoins were released by the government, I think it might come true. and if you look at some of the signs at this time, where many countries are starting to consider crypto is a good technology. sooner or later countries that are currently starting to develop blockchain, will inevitably release their own coins. and stablecoins are the most likely because the prices are stable and easy to monitor. so the possibility of stablecoins replacing FIAT in the future is wide open.

I don't think that's going to happen. In my opinion, when the coin stable refers to USD, or Fiat, it will be difficult to happen. even if the government supports stablecoins, they will inevitably come up with regulations that get people back using Fiat. Basically, Fiat is one of the important things that the country needs to have, and when the stablecoins replace that, I think a lot of things need to change. however, I still think that Fiat will not be replaced by stablecoins.

Right. Stable coin's aggregate supply will be a big deal, it can create price manipulation causing volatility even for the dollar.  This is not necessary.  The fiat currency identifies each country will need centralized management, reserves, and expansion, accompanied by clear and complicated regulations.  In my opinion, the possibility in the future is not impossible but the high possibility is that the need for stable coins to replace fiat is very difficult!

I dont see any of the possibility that stablecoins replace Fiat currencies in the future, and deeply believing this till i die. Fiat money is endorsed by the govement, and we all know that there are a lot of different govement in the world. How could such so many different govements  to be on the same page. Besides, i think stablecoins beign Fiat currencies will reduce the authority of the government.

I don't see any problems with USDT withdrawal. You specify a commission on the Ethereum network, but you can use another blockchain that supports USDT to withdraw funds in which the commission is lower. So the commission on the Tron network is free, although some exchanges, such as Binance, charge a commission of $1, which in my opinion is not significant.

Yep, they comply with regulations , but you’re forgetting that they are not owned by the government rather they are owned by individuals, and of course I know that there are stable coins that are decentralized, those ones as well does not belong to the governments.

Now let me tell you why none of them are going to be replacing fiat; the ones that are centralized and owned by individuals, since they are not owned by the government and are owned by individuals, government is not going to be accepting them as a replacement for fiat, so they are just going to be doing what they are best known for which is trading.

Then as for those stable coins that are decentralized the government wouldn’t accept them because they cannot have control over these ones. So if there is going to be anything replacing the money we are making use of right now it is going to be coming from the government’s central bank.

The solution to this issue depends entirely on the will of the governments. However, it is safe to say that private and other commercial stablecoins will not replace the common currencies of states. In the long term, when stablecoins of the central banks of states appear, other stablecoins may generally be banned by states from circulation. This just does not apply to decentralized stablecoins.
In general, the stablecoins of the central banks of states will partly systematically replace fiat currencies, but only to the extent that governments decide.

The possibility of governments adopting stable coins instead of releasing their own digital cryptocurrencies is zero, governments are never going to allow that a direct competitor to them uses their own currency against them, if anything I'm surprised that governments have not taken more direct steps again stable coins, after all we know that they cannot close down bitcoin because of its decentralized nature but the same is not true for stable coins which are centralized.

We may see countries with small economies adopt stablecoins based on popular cryptocurrencies blockchains but bigger countries are not going to put this much stress on there currency and if they wish to offer stablecoins, they will do with their own cryptocurrency. Nonetheless wrapped tokens may be used to boost the adoptions.

And when it comes to the government, they are slow in implementing this kind of change as they have long list of items to consider. But the likelihood to create their own stablecoin is always there as it will ease some activities in their operations. However, when it comes to their clients, it will take time for them to get oriented about the use of this digital currency. And not many people are open to such change.

This makes no sense given the fact that stablecoins are derived from fiat. If fiat was eliminated altogether, then stablecoins simply would not be backed by anything.

What you're talking about is probably a digital version of fiat, which already exists in various countries. CBDCs are not "backed" by fiat, they are fiat.

And yes, that future is probably imminent whether you like it or not. With a digitised version of fiat the government or central bank simply has way more control over monetary policy, interest rates, and transaction tracking for tax purposes. There are simply too many advantages associated with ridding cash (for the government, that is) for CBDCs to not be pushed by central banks across the world.

cryptocurrencies are here to stay and considering the volatility of the various coins on the market, a lot of industries and businesses are still skeptical about the adoption of crypto payments for their goods and services. However with the introduction of stable coins like BUSD USDT and the likes, the crypto can easily attain mainstream usage for evreyone.

I still believe that there is a big chance that we may see stablecoins created by governments that became corrupted like fiat, which will disturb the crypto market. How? Well if one government creates a stablecoin, backs it up with their nation treasure, then uses it to buy bitcoin, there is no end to it, how? They could use all the tax money to show they are good for it and sell stablecoins of their creation and buy bitcoin with it, most nations have 100+ billion dollars to do that, not ready to spend, but ready to show as proof they are holding it.

This is why it is quite dangerous to let them buy bitcoin with it, they would be rich overnight while people would be holding worthless stablecoin that they hope to use in their nation but that's as bad as it gets, if this idea is used for evil, it could destroy all of crypto market and make things crash very quickly.

I am not sure I agree with this. They situation may arrive where governments have no chance but to embrace decentralized stable currencies. Keep in mind though that doing stable decentralized currencies at scale is not an easy thing to do. Even today it comes at a cost (providing collateral for DAI for example).

The digitized currencies of the central banks of the states will soon appear in large quantities. They will only partially replace the common currencies of states and only to the extent that the governments of these states will allow. Although CBDCs will be much more efficient than conventional currencies, for a number of reasons, a full transition to their use will not be possible. In any case, this is not a task for the near future.

I think they will fully replace common fiat currencies as digital money allows the banks and governments to collect all kinds of data of those being forced to use the digital money. Digital money issued by central banks is a real threat to privacy.

Unfortunately there is nothing to do, bitcoin can be bought by anyone, in fact I would be surprised if governments have not accumulated bitcoin in secret for years, this is why despite the brilliant and advanced technology made by satoshi we still depend on the financial IQ of the average person, if they cannot understand why something like bitcoin that is scarce and that cannot be printed at will and in any amount desired by the governments is superior to fiat currencies then the future of bitcoin is not going to be as bright as we think it could be.

This! Absolutely, I am sure governments own Bitcoin as well. For almost any government a billion or even half a billion is nothing. Why not buy some of that chap junk and see what happens later on. I believe a lot of governments bought into Bitcoin long ago.

Governments do not even really need to buy bitcoin since they can even confiscate it, there have been cases in which governments found themselves with huge amounts of bitcoin after coming down to one of those dark markets that exist on the dark web, supposedly they sold those coins but what if that was just a front and instead they kept hose coins? Then that will mean that many governments are already in bitcoin preparing for the next financial crisis they caused on the first place.

I don't think this going to almost certainly occur. While numerous individuals are investing in stablecoins and discover them alluring, the administrations will be hesitant to part with all their force without any problem. We realize that the digitial USD and EUR are coming, so it appears to be almost certain that the national banks will push and advance their own monetary standards. Having full command over the money supply and having the option to print more money whenever they please is the way to monetary strategies in today's world.

Exactly. So far, stablecoins are used by the minority while that's not the case with Fiat nowadays. Despite crypto's recent popularity, the vast majority of people haven't heard about or even used crypto/Blockchain tech in the first place. It's yet the day where merchants and businesses worldwide are struggling to accept crypto as payment method. The vast majority is with Fiat because of its stability and reliability. Stablecoins are as stable as Fiat, but they come with their own set of problems. As long as Fiat is easier to use than a stablecoin, I don't see stablecoins like USD Coin or Tether replacing traditional Fiat currencies anytime soon.

Nonetheless, we cannot deny the fact that crypto is rising in popularity at a fast pace. Who knows if someday major retailers being accepting stablecoins as payment method? Even if this happens in the future, stablecoins won't replace Fiat because they're not backed by the government. That could change if governments back an specific stablecoin as a Fiat currency of their own. In the strange and bizarre world of crypto, anything can happen. Be prepared for the worse if governments decide to go rogue against the industry in the future. Just my thoughts ;D

The minority that used cryptocurrencies will come across stable coins as well but you should not expect that people will use these stable currencies outside of the cryptocurrency space and majority in the cryptocurrency space also have trust issues with these companies that issues these stable currencies as they are not transparent with their financial assets.

Do you trust these stable currencies to hold for the long term and if so what are the coins you trust as i would like to know.


There is no way major retailers will be accepting stable coins as payment method, either you need to pay extra for the transaction charges every time you purchase something and as a customer how long you will be willing to pay extra for a product.

I personally don't see that happening unless we have a central government and the government takes over the stable coin. What seems more likely to happen is that some countries may choose to have their own cryptocurrency which may replace the fiat or probably be used alongside with the fiat.

As the market continues to show its changes, I could say that it can't be impossible. It is a choice of the people to let that thing happen in the future. Because if that only the best solution to help this volatility stopped and continue to adopt the world of digitalization market, that it looks very acceptable to the people. But it finds more in government control on the market the same as how the fiat currencies run through.

Yeah, it's most likely to be the scenario when the government decide to make their own cryptocurrency that can be fully controlled, I doubt any government would let some stablecoin replace fiat, worst case they might ban it if it gets out of control but if the stablecoin is coming from them it's basically the same as printing money but without really printing it.
Many governments have already prepared CBDC anyway and it's just matter of time until those get released to the public, some might fail some might succeed it depends on the people as well, but i'd expect stablecoin to just remain as alternative or stay to be used only for trading and preserving value of our asset.

Yes.  CBDC - Looks like the most viable option.  Several countries have conducted clinical trials with CBDC such as Japan, Thailand, followed by Norway and Russia.  Bitcoin is uncontrollable, the government knows it.  They will, that will be a new way to erase fiat traces.  In the next 5 to 10 years, the legacy of fiat inefficiencies and inefficiencies will gradually fade into people's psychology.  That is innovation.

In my opinion, it is impossible to happen, not a single digital currency is able to replace viat currency, so forget the things that are not possible.
If a digital currency replaces the viat currency, it requires a lot of support, both from the government and other institutions, meaning that it only takes a lot of time.

What even makes you think that such thing is going to be happening? There is only one top stable coin that I know of is decentralized and that is DAI, the rest are centralized and owned by people. So, what makes you think that the government will be adopting a currency that is owned by individuals and living things that has to do with the finance in the hands of ordinary individuals? That’s the same thing that happened with Facebook Libra and the reason they were stopped. If the government wants a stablecoin they are going to create their own and not adopt anything.

- A low chance, rather than completely impossible because the government seems to want to take a step further in technology, ideas that do not use fiat and cash are discussed quite a lot, you can refer to this topic through several news forums. The big weakness of this plan is that the government has not been able to make a transition completely and most convenient for users but as soon as the rules are agreed upon and accepted internationally, stablecoins dominating and replacing the old system will be easy in the future.

A ton of points before that handles about digital currency supplanting fiat cash which I actually accept that it wont happen regardless of whether we present the most stablecoins in light of the fact that the public authority wont permit this sort of organization, there's no mysterious cash here and this is a major NO for the public authority so this wont occur.

Stablecoin has the original standard from fiat currency placed in banks, typically USDT, BUSD, TUSD, USDC then to protocols from crypto institutions. If taking stablecoins instead of FIAT, that doesn't seem right. We still don't have a worldwide crypto adoption so it's not a matter of Stablecoins replacing FIAT. Governments must never let cryptocurrency replace the national currency they create.

I think that stable coins like USDT, BUSD, TUSD, USDC has already replaced the USD as in the exchanges we use these stable coins and not the USD itself. In the future, there will be no USDT or USD and money will be measured in bitcoin only.

As far as i know, almost all countries didn't have the intention to replace their fiat money with the digital currency. The fiat money will co-exist with the digital currency and so many countries already stated about this dude.
The stable coin will never replace the fiat currency but it can be a good option to use stable currency in the digital form.
You will never see that happens for sure.
This has been discussed so many times.

Its so hard to tell because crypto currency has a bad influence in others eyes and mostly the word SCAM is the common thing that always turn to some people to reject crypto currency.. Its a negative news to make the story short..
For me if i will answer your question if its still possible.. Probably its still No CHANCE even crypto keeps improving its technology . as some of the countries are against on it which the way how it can influence people to make crimes and etc. on this reason we can tell that's there's no way it can replace fiat.

They have to be measured by other commodity standards, Bitcoin is only part of that. The world has printed too much money and ignored standards. Historically we've had 2 dollars printed on the gold standard and they don't last long.

No. The stable coin is currently having a lot of problems and also yesterday USDT had a problem with Bitfinex. it is too easy to conclude that the current currency will be replaced.
However, it is possible that in the next few decades we will see a new currency that can be used more efficiently. the current shift of people in transactions to electronics makes this an indicator

I don’t think it will happen. USD or USDT. This currency is used by too many people to replace it with something else. This money is embedded in our lives too tightly to refuse it. And nothing needs to be done, because we already use electronic money.

Definitely it will because any country can rise and introduce their stable coin and people will value it without going into their fiat currency, despite that fiat currency is the foundation of each country, and they  started with it, and it will be very difficult to leave it and starting making use of stablecoins in the society or country, so Fiat remain fiat currency and it's more influential than any other currency for now.

No there is not even a slim possibility that a government will adopt stablecoins as their own.  They would rather create one that they have full control than adopting stablecoins that can greatly affect their economy.  I believe the government will adapt to the present existence of stablecoins but they will never adopt it as their own due to the issue of control.

yes, maybe that will happen if the government in a country is interested in these stablecoins. but in your opinion, where will the stablecoin be adopted ??
and it seems that if you look at the current developments, many countries and governments are not sure about such a thing, so it is not easy to issue a regulation governing digital currencies, and it is not easy for stablecoins to replace a country's fiat currency.

Each country will clearly use their respective country's currency, now for matters about stablecoins such as the USDT example I think it will be very easy to apply through currency exchanges at banks in their respective countries, even though your country's government has not adopted it, but I am very I am sure that several governments in other countries have adopted it, because the value of stablecoins is always the same as the value of the dollar in general.

I don't think so. No country will ever withdrawal there fiat. If they have to digitalized everything they will make their own digital currency with centralised system. Yes I also think that fiat will be alternative and many people 5 years from now use stable coins and crypto as a payment method. But fully withdrawn of fiat is not possible.

Technological advances will continue to develop, we have seen digital currencies such as those in bank balances, debit cards and credit cards are very easy to use, we don't need Fiat if we want to make transactions using a debit card.
Fiat currency seems to always exist because not everyone has a connection to the internet network and after all problems are resolved such as internet coverage, electricity and tools for digital currency payment systems such as stable coins are resolved, maybe we can use them with regulations issued by several countries.

why not, stablecoins are the most suitable crypto for everyday use. with a low fee and a stable price this is very appropriate. and if governments make their own crypto, I'm sure they'll make stablecoins. and the possibility of stablecoins replacing fiat is wide open. there is no cryptocoin more precise than stablecoins, privacy coins are difficult to track, bitcoin and ethereum are too expensive and very unstable.

I think if the government do decides to develop a cryptocurrency and they went ahead to get a stable coin, is it still going to be pegged to the USD that the stable-coin is trying to replace or to what? Lets say they do get a stable coin, wouldn't it be regulated with all the government functionalities attached to it or will it be free and decentralize like the real cryptocurrency?
What ever the government comes up with wont really be a true cryptocurrency and stable-coins might be majorly accepted for transaction but will not replace fiat.

This is very unlikely, I love bitcoin and I think it will become a currency used worldwide but to think that somehow stable coins are going to disappear when coins like USDT have a higher volume than all the coins above it in terms of the market cap combined is simply not realistic, if you do not like stable coins then that is fine but we cannot close our eyes to the truth, stable coins perform an important function and that function is not going to suddenly disappear out of nowhere.