Stablecoins or CBDCs?

[wxa7115]

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.

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

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

[Ever-young]

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.

[mindrust]

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

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

[Dervish doff]

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

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

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

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

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

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

[Argoo]

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

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

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

[Blowon]

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

[RussianEnglishTranslation]

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

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

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

[vanesha]

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

[|MINER|]

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

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

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

[tvplus006]

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

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

[icalical]

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

[wxa7115]

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.

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

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

[Abiky]

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

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

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

[tvplus006]

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

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

[Abiky]

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

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

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

[cheezcarls]

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

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

[Abiky]

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

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

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

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

[tbct_mt2]

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.

[lornadane]

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

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

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

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

[hamba laeh]

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

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

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.