Re: Will stablecoins replace Fiat currencies in the future?
Stablecoins are crypto assets pegged to the value of Fiat, bringing people the "best of both worlds". The most popular stablecoins are often pegged to the US Dollar, since it's the world's reserve currency. Some of them comply with regulations, further legitimizing the industry as we speak. With all of the benefits stablecoins provide, Fiat's prominence could be threatened in the long run. After all, it's much faster and cheaper to use a stablecoin than a credit/debit card. People could stop using Fiat currencies like the US Dollar or the Euro in exchange for a stablecoin of their choice.
This makes me wonder, will stablecoins replace Fiat currencies in the future? If not, why? Is there a possibility governments will adopt stablecoins as their own instead of launching digital currencies from scratch? Your input will be greatly appreciated. Thanks in advance.
The digitized currencies of the central banks of the states will soon appear in large quantities. They will only partially replace the common currencies of states and only to the extent that the governments of these states will allow. Although CBDCs will be much more efficient than conventional currencies, for a number of reasons, a full transition to their use will not be possible. In any case, this is not a task for the near future.This makes me wonder, will stablecoins replace Fiat currencies in the future? If not, why? Is there a possibility governments will adopt stablecoins as their own instead of launching digital currencies from scratch? Your input will be greatly appreciated. Thanks in advance.
I think they will fully replace common fiat currencies as digital money allows the banks and governments to collect all kinds of data of those being forced to use the digital money. Digital money issued by central banks is a real threat to privacy.