Stablecoins or CBDCs?

[jokers10]

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.

[Abiky]

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.

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

[Argoo]

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.

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.

[Republikcoin.com]

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.

[jokers10]

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).
...

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.

[Abiky]

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.

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

[jokers10]

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

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.

[tjtonmoy]

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

[jokers10]

...
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.

[Abiky]

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.

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

[jokers10]

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.