Original Authors: Bai QinJen, Evan Lee
Introduction
The concept of "money" is standing at the threshold of a major transformation. Should the future money be issued by the state or left to the market?
—Perhaps,The answer is not a choice between two options..
While countries are accelerating the launch of "central bank digital currencies," another type of "stablecoin," born from the market yet legally recognized, has quietly entered the global financial system. Rather than being rivals, they resemble a well-matched team continuously refining their collaboration. Their coexistence and cooperation will redefine every payment and every transaction we make—whether in dollars, euros, or yuan.This silent revolution is shaping the rules of future money.
Stablecoins vs. CBDCs
Although stablecoins and central bank digital currencies (CBDCs) are often discussed together, their origins and missions are entirely different.
- Stablecoins are created by the market.
It is created by enterprises or organizations and thrives on the open soil of blockchain, making it inherently suitable for fast payments, cross-border transfers, and decentralized finance in the digital world. Although it is subject to regulation, it still retains a certain level of privacy, with notable advantages in speed and flexibility.
- CBDC is state-led.
Issued directly by the central bank, the core mission of a CBDC is to safeguard monetary sovereignty, enhance financial control, and serve the public interest. Each transaction is typically traceable, facilitating national regulation and monetary policy implementation. The goal of a CBDC is not to eliminate stablecoins, but rather to provide a foundation for the entire digital currency system.A reliable national-level foundation.
In fact, they are forming a kind ofDivision of labor and cooperationRelationship:
- CBDC is the core focus.: More suitable for domestic daily payments, policy regulation, and other "domestic" scenarios
- Stablecoin mainnet is now live.They perform better in "offshore" environments such as cross-border payments, crypto finance, and global asset flows.
Places around the world, such as Singapore and Hong Kong, China, are also experimenting with CBDCs while granting licenses to compliant stablecoins, promoting the coexistence and development of both.
In the future, we will likely live in a world where...Bimetallic monetary systemLi:
Digital cash provided by the state serves as a stable foundation, while stablecoins created by the market bring flexibility and innovation.-- They are not about replacing each other, but jointly building the payment and financial landscape of the next era.
Global CBDC Deployment Progress
Global CBDCs are undergoing a critical phase transitioning from pilot projects to broader implementation. Although early attempts have shown limited results, a new generation of digital currencies is gradually gaining scale, with increasingly diverse designs and objectives.
- Bahamas · Sand Dollar (introduced in 2020)
As the world's first nationwide Central Bank Digital Currency (CBDC), the "Saham Coin" aims to enhance financial inclusion, particularly in remote islands with limited access to banking services. It reduces transaction costs and maintains payment functionality even after natural disasters. However, user adoption has remained consistently low, with the currency holding only a small share of the money supply. Privacy concerns also persist due to its traceable design.
Similar situations are also observed with Nigeria's eNaira and Jamaica's JAM-DEX, where initial adoption has not met expectations.
- China · Digital Yuan
Since the pilot program of digital RMB began in 2020, recent growth has been significant:
The payment volume surged from 7.3 trillion yuan in July 2024 to 16.7 trillion yuan in November 2025, while the number of wallets increased sharply from 180 million to 2.25 billion.
The People's Bank of China will implement a new digital RMB management system in January 2026, advancing its evolution from "digital cash" to "digital deposit money." Unlike Europe's privacy-focused approach, e-CNY emphasizes efficiency and adoption, and is exploring cross-border settlements through initiatives like mBridge.
- EU · Digital Euro
It is currently in the preparation phase and is planned as a supplement to cash and bank deposits. It may be launched as early as 2029 (more likely in early 2030). Its design emphasizes privacy protection and anti-counterfeiting, achieving controllable anonymity by separating identity and payment data, aiming to reduce reliance on foreign payment systems.
- United Kingdom · Digital British Pound
The UK also places great emphasis on privacy protection, explicitly prohibiting government access to personal transaction data. Its individual holding limit may be set at 10,000 to 20,000 pounds, higher than the 3,000 euros in the EU, and it will be open to both residents and non-residents simultaneously.
- Kyrgyzstan · Digital Som
We are adopting a pragmatic approach, exploring collaboration with existing blockchain infrastructures (such as BNB Chain), and implementing a phased advancement strategy:
1. Connect the central bank with commercial banks
2. Consolidate the state treasury for government payments
3. Test the offline payment function
The country has also introduced a national stablecoin, KGST, and plans to establish a cryptocurrency reserve to promote the international use of its CBDC.
Looking at practices around the world, CBDCs are mostly centered around core objectives such as financial inclusion, payment efficiency, and monetary sovereignty, with many also committing to protecting user privacy. However, as the scale expands, key issues remain unresolved:In practice, can privacy-preserving designs be maintained, or will they be overridden by stronger national surveillance demands?The future CBDC will seek a long-term balance among efficiency, privacy, and regulation.
Emerging Trends and Strategic Shifts
The development of global digital currencies is entering a more pragmatic phase. Countries' strategies are no longer just "trial and error," but are instead being advanced in a targeted manner based on their own specific needs.
- United States: Promoting Stablecoins, Delaying Digital Dollar
The United States has clarified its direction: prioritizing the regulation of stablecoins rather than rushing to launch a central bank digital currency (CBDC). The House of Representatives passed the "Payment Stablecoin Clarity Act" in 2024, establishing a federal regulatory framework for stablecoins issued by private entities. Meanwhile, the Federal Reserve has taken a cautious stance toward a retail digital dollar, stating that it is "not urgent" and would require congressional authorization. This means that the U.S. has chosen to let market forces lead innovation in digital currencies, while the government focuses on setting the rules.
- India, Brazil: Making Digital Currency "Programmable" to Solve Real-World Problems
Digital currencies are no longer just "electronic cash," but have also become policy tools for improving efficiency.
India's digital rupee pilot focuses on distributing government subsidies, ensuring that funds reach the intended beneficiaries directly and are not misappropriated.
Brazil's Drex system is planned to launch by the end of 2025, featuring built-in smart contract functionality that can automatically deduct taxes and execute contract terms, making the CBDC an automated efficiency tool.
- Japan: "Wholesale First," Upgrading from Within the Financial System
Unlike many countries that start directly from the public side, the Bank of Japan has chosen to first introduce a "wholesale CBDC" targeting banks and financial institutions for interbank settlement. It is expected to conduct tests between 2026 and 2027, while the retail version for the general public has been temporarily put on hold. This reflects a pragmatic approach: first upgrading the core of the financial infrastructure before considering public applications.
These examples show that the global digital currency landscape is moving toward diversification and pragmatism—some countries are promoting private innovation under strengthened regulation, others are leveraging programmability to achieve policy goals, and some are initiating reforms from within the financial system itself. There will be no single uniform path in the future, only approaches that are suitable for each country's specific circumstances.
Conclusion
The core issue of future currency is straightforward: how can a country's digital currency and market-stable coins work well together?
The world has already taken action:
- The BIS "Project Agora"is testing how central bank digital currency and commercial bank digital currency can interoperate within the same system.
- Singapore's "Guardian Program", has already realized the collaborative settlement of central bank digital currency, stablecoins, and digital assets in practical scenarios.
The goal of these efforts is simple:Do not let future money be fragmented into isolated islands that cannot communicate with each other.The key is that state-backed digital currencies must be able to seamlessly "communicate" and operate alongside already widely used stablecoins.
Interestingly, with the development of central bank digital currencies (CBDCs), an unexpected effect may be emerging: it is making decentralized stablecoins more legitimate and stable, thereby affirming the indispensable role of stablecoins in the future financial system.
The future monetary landscape is likely not about who replaces whom, but rather...Each with a role, working together collaboratively..