Stablecoins: Is There Life After CBDC?
Over the past year, the hype surrounding national digital currencies has increased significantly. Stablecoins have risen in price to the same extent.
The growth of stablecoins skyrocketed in 2020, bringing their total supply to $31.7 billion in 2021. Most of the market is made up of the two largest - USDT (75%) and USDC (14%) market. Can national stablecoins crowd out market ones?
Mathieu Saint-Olive, CBDC Advisor at ConsenSys said:
Stablecoins and national digital currencies make a big difference. CBDCs will spread in interbank payments. They are unlikely to become a means of retail payments, and they will not work in a regular store.
He said that Stablecoins and CBDC will have different uses. Certain kinds of stablecoins will be preferred for niche use cases. So CBDC and stablecoins will coexist with each other, and their mutual influence does not pose a threat.