Will stablecoins replace Fiat currencies in the future?

[uneng]

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.

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 

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.

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[tvplus006]

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

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)

[daenarys_stormborn]

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

[Abiky]

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)

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

[tbterryboy]

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.

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.

[xiboothrezi]

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.

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?

[OcTradism]

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

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.

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.

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.

[kidbounty]

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.

[Farma]

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.

[ivankoh]

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!

[lxiaoh]

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

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.

[tvplus006]

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

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.

[darewaller]

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.

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.

[Argoo]

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.

[South Park]

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.

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.

[Yayis]

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.

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.

[CaVO32]

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.

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.

[magneto]

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.

[adekogbe]

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.

[lixer]

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.

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.