Governments will never accept something they cannot fully control. Whether its CBDCs or stablecoins, control is the name of the game. The idea that governments would just adopt existing stablecoins and give up their role in monetary policy is naive. Why would they give that power to private corporations like Tether or Circle? They wont.
Governments will still be able to control stablecoins by manipulating the companies behind them. Lawmakers can draft regulations that would keep stablecoin companies in check. This way, stablecoins will serve as the de-facto digital currencies of the government.
I think that's the plan of Trump's administration. Ban the creation of a US CBDC, but indirectly support stablecoins and make them legal tender. The GENIUS act passed by Congress, tell us things are moving in this direction. I bet the EU will do the same, while China will drop its "e-CNY" CBDC in favor of a CNY-backed stablecoin. We can never tell what will happen in the future. So here's hoping for the best.
Luckily for us, there is just one asset that nobody can do this to.
