https://img.leopedia.io/DQmRUFA6dzsoimSamkpngFwsRPS3SB7poA6McWVmWTKp4Y3/27305588_145.jpg 
[source](https://www.freepik.com/free-psd/3d-character-young-man-with-business-concept_27305588.htm#fromView=search&page=2&position=47&uuid=0319ca21-325f-42ba-a885-3c7177414ba9&query=Stablecoins+animated) 

The future of [money](https://inleo.io/@leoglossary/leoglossary-money) became uncertain from the inception of [cryptocurrency](https://inleo.io/@leoglossary/cryptocurrency). The era was indeed changing, there has been proof that [transactions](https://inleo.io/@leoglossary/leoglossary-transaction) can move way faster than earlier reckoned. A three second global transaction is attributed to the [Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive) chain. How about that?. [government](https://inleo.io/@leoglossary/leoglossary-government) at first where fighting but along the line they've switched to embracement although not [ALL](https://inleo.io/@leoglossary/leoglossary-all-currency) countries are yet up to the understanding of what is going on. We have to admit the government is known for one thing; control.

Maybe this is why some governments are not ready to [buy](https://inleo.io/@leoglossary/leoglossary-buy) this idea. And on the other hand, a reason why advanced ones are incorporating. There is going to be a huge influx of monitored [cash flow](https://inleo.io/@leoglossary/leoglossary-cash-flow), something that makes it easy for taxations. [revenue](https://inleo.io/@leoglossary/leoglossary-revenue) will increase as much money [flows](https://inleo.io/@leoglossary/leoglossary-flow) into the [digital](https://inleo.io/@leoglossary/leoglossary-digital) realm. 

Can one [account](https://inleo.io/@leoglossary/leoglossary-account) for how much Real [world](https://inleo.io/@leoglossary/leoglossary-world) [asset](https://inleo.io/@leoglossary/leoglossary-asset) [tokenization](https://inleo.io/@leoglossary/leoglossary-tokenization) alone can do?. So how will the government be stepping in? First, expect it to be centralized. This is where the future of CBDC or Stablecoins steps in.
 https://img.leopedia.io/DQmQ5CQmixijfoYRb34cmkTNeJLA1dDYFEXrZU6ryEzJatA/11564512_20794850.jpg 
[source](https://www.freepik.com/free-vector/people-with-money-moneybox-icon-with-gold-coin-isometric-illustration_11564512.htm#fromView=search&page=1&position=36&uuid=bca04b09-809d-4339-bdc1-58c056ad1164&query=CBDC+animated) 
At first I thought the [central ⇪](https://inleo.io/@leoglossary/leoglossary-central-bank-digital-currency-cbdc) digital currency× (CBDC) would lead the charge. The [underlying](https://inleo.io/@leoglossary/leoglossary-underlying) fact was that these [tokens](https://inleo.io/@leoglossary/leoglossary-token) will be directly issued by [central banks](https://inleo.io/@leoglossary/leoglossary-central-bank); something that is to their huge favor. Central banks and government are like 5 and 6. From here we can easily say the old ways just in [blockchain](https://inleo.io/@leoglossary/blockchain) realms. Maybe I was a little hasty to reach conclusions. 

Who uses money most, government or merchants? The latter have a [hedge](https://inleo.io/@leoglossary/leoglossary-hedge). Money is a means of transactions, something that [entrepreneurs](https://inleo.io/@leoglossary/leoglossary-entrepreneur) and [businesses](https://inleo.io/@leoglossary/leoglossary-business) do more often. From here it seems CBDC may not thrive. The fact is that it will remain a [local currency](https://inleo.io/@leoglossary/leoglossary-local-currency) and because of this, it will be rigid.

It will not help in easy global transaction living international businesses stranded. Let's take for instance, can someone in Nigeria easily accept the Japanese Yuen as a [settlement](https://inleo.io/@leoglossary/leoglossary-settlement-financial) for business? A difficult one, he will have to look for ways to make the necessary conversion; a stress it stands. This is where [stablecoins](https://inleo.io/@leoglossary/leoglossary-stablecoin) steps in. Would a Nigerian accept US dollars to settle international transactions? Yes, this is not because he actually [love](https://inleo.io/@leoglossary/leoglossary-love) the [USD](https://inleo.io/@leoglossary/leoglossary-usd) but rather, the [US Dollar](https://inleo.io/@leoglossary/leoglossary-u-s-dollar) remains the unit for global settlements.
 https://img.leopedia.io/DQmcbL8Y4JKRBzFFk1rNtgYkTbp6bTEsu3o74n5A4CH4SVR/3d-render-black-hands-with-golden-coins-abundance_107791-17776.jpg 
[source](https://www.freepik.com/free-photo/3d-render-black-hands-with-golden-coins-abundance_36444791.htm#fromView=search&page=1&position=12&uuid=df15bb79-2ba5-442c-aa8e-0d6389080d18&query=Stablecoins+and+CBDC+animated) 
So the difference remains this, CBDC will remain a national [currency](https://inleo.io/@leoglossary/leoglossary-currency) while Stablecoins settles global transactions, which will scale. The answer remains, why have the US government sided for Stablecoins rather than a CBDC USD?. Firstly, they have a hedge, it is their currency that settles most global transactions, something that should not be undermined. 

The US [economy](https://inleo.io/@leoglossary/leoglossary-economy) will boom through this as dollar [gains](https://inleo.io/@leoglossary/leoglossary-gain) more strength. This is why President Trump and his cabinet have pushed for the [Genius](https://inleo.io/@leoglossary/leoglossary-genius-2016-film) acts. 

This comparison shows that CBDC on the long run will die down while Stablecoins will be seeing influx in the trillions within a few [years](https://inleo.io/@leoglossary/leoglossary-year). Does this mean other crypto will die off? Of course not, intra-platform [payments](https://inleo.io/@leoglossary/leoglossary-payment) will still occur. Let's take for instance Hive and [HBD](https://inleo.io/@leoglossary/leoglossary-hive-backed-dollar-hbd), we all know how this pairs [work](https://inleo.io/@leoglossary/leoglossary-work), one is used mostly for platform activities (HIve tippings) while HBD mostly settles financial economy of a pegged dollar. To be even more precise, funding will be flowing into the crypto industry through this. 

To conclude, let me add, green light is showing up for Stablecoins against CBDC. No one saw this coming, the fate was that crypto currency like [Bitcoin](https://inleo.io/@leoglossary/leoglossary-bitcoin) will be leading the way. It has become a [store of value](https://inleo.io/@leoglossary/leoglossary-store-of-value) (digital gold) and the [price](https://inleo.io/@leoglossary/leoglossary-price) is still counting. Adding to that, we can't ignore the need of global unit of transactions. Virtually is taking over, digital business operation has come to stay and blockchain tech is leading the charge. [merchant](https://inleo.io/@leoglossary/leoglossary-merchant) dominance sides completely with stablecoins unless proven [Vice](https://inleo.io/@leoglossary/leoglossary-vice-2015-film) later. A big room for [USDT](https://inleo.io/@leoglossary/leoglossary-usdt) to thrive as first inception Stablecoins offerers, fortune is shining on them.






Posted Using [INLEO](https://inleo.io/@daniasi/cbdc-vs-stablecoins-fhw)