I've been following the trend news of central banks creating their own digital currencies but a question have since then troubling my mind.
1. These new Central Bank coins are they going to be stable coins or not?
2. What will happen if they are not stable coins? If holding them will be profitable many will leave crypto space and focus on these new coins?
3. Maybe people will just use them as a plus since it's from the government?
4. Will regulations still come after this? I think other coins will be neglected and regulations will only be for coins from government?
It would be an attempt at a stable coin. But if there's anything the conventional currency market has taught us is that there's nothing as such as a stable coin if it is not decentralized and backed by another asset. So the Central Bank issued coins are more like digitized national currencies with probably more security, and will have similar functions to those of the already existing fiat currencies.
Frankly, there's no innovation there.