CBDC or stablecoins: Why traditional banks must adopt a new and adaptable policy

CBDC or stablecoins: Why traditional banks must adopt a new and adaptable policy

The inception of Central Bank Digital Currency (or CBDC) and stablecoins are major proof that cryptocurrency is here to stay. While CBDCs are issued by the government, stablecoins, on the other hand, are issued privately to facilitate a blockchain initiative.

However, while both CBDC and stablecoins are fundamentally used for the same purposes, the major difference between them is the issuing authority which is either centralised or decentralised.

For instance, CBDCs are government-issued and as such are regulated by a centralised authority. On the other hand, stablecoins do not operate in the same manner; instead, they exist across a distributed, and decentralised blockchain network.