Stablecoins are digital currencies designed to maintain a stable value, often pegged to fiat currencies like the US dollar, and are typically issued by private entities. They aim to provide the benefits of cryptocurrencies, such as fast transactions, without the volatility. CBDCs, or Central Bank Digital Currencies, are digital versions of a country's fiat currency, issued and backed by central banks, offering the same trust as physical cash but in digital form.

Recent developments show stablecoins, particularly USDC, being integrated into traditional financial systems in ways that mimic CBDCs. For example, proposals to use stablecoins for payments in various jurisdictions suggest they are filling gaps where CBDCs are slow to adopt. This has led to debates about whether stablecoins could become de facto CBDCs, especially in regions without widespread CBDC implementation.

This blurring line has implications for users, who may see little difference as long as payments are efficient, and for regulators, who must ensure alignment with monetary policies. The controversy lies in whether stablecoins undermine national soverei...

Some groundbreaking revelations have recently surfaced regarding the digital euro, capturing the attention of the financial world. The European Commission's recent publication of draft legislation on the digital euro brings the idea of a Central Bank Digital Currency (CBDC) closer to reality. The Digital Euro will not replace physical cash but instead exist alongside it as an additional form of online or electronic payment. It is expected to be available by 2026. Let's delve into the key features of this proposed digital currency:

Independence from Intermediaries: Unlike traditional payment systems like Mastercard or VISA, the digital euro would eliminate the need for intermediaries. Users would be able to make transactions directly without relying on third-party payment providers.

Wide Availability: The Digital Euro is planned to be accessible across the entire Eurozone, available to both consumers and businesses alike.

Backed by European Central Bank (ECB): Unlike cryptocurrencies, th...