Conclusion
Central Bank Digital Currencies and stablecoins are two interesting narratives. While CBDCs offer stability, trust, and regulation-guaranteed state-backed currency, stablecoins offer velocity, flexibility, and access globally in the digital economy. Rather than labeling them as substitutes for one another, a more advanced observation identifies their potential to complement one another to an even more robust, more inclusive, and more effective digital payments system. With each new kind of electronic money, collaboration, ingenuity, and prompt regulation will be necessary to their full advantage and harm reduction. Stablecoins, for instance, will likely be at the forefront of long-term mainstream financial infrastructures and emerging digital paradigms with complementary natures of such technologies in the event of effective design and regulation. A dialogue between central bank and private issuer and regulators will ultimately determine a system of finance in the digital world guaranteeing innovation, trust, and affordability in ratio to the world economy.
