Binance's CZ Declares Stablecoins Outpace CBDCs in Adoption and Utility

Changpeng Zhao (CZ), co-founder of Binance, declared during his remarks at the WeX2025 event in Japan on August 25 that stablecoins are overtaking Central Bank Digital Currencies (CBDCs) in terms of adoption and market relevance. According to CZ, many CBDC initiatives launched in the 2013–2014 period are now considered obsolete due to minimal user adoption and a failure to deliver compelling advantages over existing financial systems [1].

Stablecoins, by contrast, are gaining widespread acceptance due to their ability to maintain a stable value while enabling fast, low-cost, and cross-border transactions. CZ emphasized that these characteristics make stablecoins particularly attractive for everyday commerce, international trade, and financial innovation [1]. Their stability removes much of the volatility typically associated with other cryptocurrencies, creating a reliable medium for transactions without sacrificing digital efficiency [1].

CZ also highlighted a key distinction: while stablecoins are growing organically in the market, CBDCs are struggling with slow governmental implementation, unclear value propositions, and privacy concerns. Users are not seeing a compelling reason to switch from existing digital payment systems or private digital currencies to government-issued CBDCs [1].

An additional point raised by CZ is the evolving stance of China toward stablecoins. Although China has long maintained strict control over cryptocurrency, CZ observed a softening approach, particularly in Hong Kong, where authorities are exploring regulatory frameworks for stablecoins [1]. This shift could pave the way for increased innovation and broader adoption within a highly regulated financial landscape.

While CZ did not outright dismiss the potential of future CBDCs, he suggested that current versions lack the necessary features to compete with the agility and utility of stablecoins. For CBDCs to succeed, they must demonstrate clear, tangible benefits, address privacy concerns, and seamlessly integrate into daily use [1]. As it stands, stablecoins are leading the charge in digital currency adoption, driven by their practicality and user-centric design.

The broader implications of CZ’s remarks underscore a critical shift in how digital money is being perceived and used. With stablecoins continuing to gain traction and CBDCs lagging in real-world adoption, the market appears to be favoring a more decentralized, user-driven financial model. Whether this trend will persist depends on how effectively central banks can adapt and innovate to close the growing gap between public expectations and institutional offerings [1].

Source:

[1] Stablecoins’ Astounding Triumph: CZ Declares CBDCs Obsolete –

(https://coinmarketcap.com/community/articles/68abcf487491280cc5b41881/)