The stable digital currencies, also known as CBDCs have been gaining popularity in the last two years, especially after 2021 bull market.
This is a misunderstanding. Not all stable coins are CBDCs. CBDCs are Central Bank issued Digital currencies. Focus on Central Bank. They don't even have to be cryptocurrencies.
Recently I was looking at some news about CBDCs implementation in Australia, and I was wondering if this is something that could cause trouble or confusion within a local economy as it moves forward. Countries like Canada have developed contingency plans for this system, although I'm not sure how small countries could be affected by this. What are your thoughts?
CBDCs are just a (another) digital form of the local currency. So the big economic impact can be only over the card processing companies (like Visa/Mastercard) which, in case of CBDCs will no longer earn millions from fees (of course, the shops will earn by not spending for those fees). And, as said, it's expected CBDCs will have a massive negative impact on privacy of its users.