Stablecoins or CBDCs?

[tvplus006]

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. ...

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.

[masterrex]

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.

[wxa7115]

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.

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.

[tbct_mt2]

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.

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/

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.

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.

[MinMan]

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.

[Abiky]

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.

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

[Nivia1st]

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.

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.

[tbct_mt2]

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

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.

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.

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.

[BitcoinPanther]

If stablecoins are already proven to be successful, why re-invent the wheel with the launch of a new government-backed digital currency?

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.

Can't just governments back stablecoins themselves and avoid all of the hassle of creating new digital Fiat currencies from scratch?

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.

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

[lixer]

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.

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.

[tvplus006]

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

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.

[$anounimus$]

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.

[andyou1234]

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.

[Samurai trieng]

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.

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

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,

[wxa7115]

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.

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.

[Abiky]

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

[Webetcoins]

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.

[isaac_clarke22]

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 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.

[7788bitcoin]

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.

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.

[Jackl87]

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.

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.