In my opinion, a very correct and detailed answer to a question that the OP asked others, but which he answered himself. Indeed, at the moment when CBDCs become widespread, they will displace the existing centralized stablecoins from circulation, because there will be more trust in them. But decentralized stablecoins will gain popularity among participants of the cryptocurrency market. Just my 5 satoshi)
Decentralized stablecoins will be the only ones that will stand the test of time. The rest will go down the drain once governments launch digital currencies of their own. People will still be able to enjoy the benefits of Fiat by cashing out their crypto holdings into their own bank accounts. Stablecoins are only useful for day traders looking to make a quick buck without the need to go through the hurdles of creating/managing a bank account. As long as crypto/Blockchain tech remains decentralized, nothing else matters.
Nonetheless, it seems unlikely stablecoins will replace Fiat anytime soon. The only way that will happen is if governments adopt stablecoins in their entirety. But the announcement of CBDCs tells us otherwise. Once centralized stablecoins come to an end, we might see decentralized alternatives rise like never before. This means greater liquidity for stablecoins like DAI and USDJ in the future. Rest assured that with or without stablecoins, crypto will be here to stay for a long, long time. Just my thoughts
