Stablecoins Outpace CBDCs in Global Adoption, CZ Says

Changpeng “CZ” Zhao, former CEO and founder of Binance, asserted during a keynote speech at the WebX conference in Tokyo on August 25 that stablecoins have surpassed central bank digital currencies (CBDCs) in global adoption, calling the latter “outdated.” Zhao highlighted the growing acceptance of stablecoins, particularly among governments, as evidenced by recent regulatory developments such as Hong Kong’s Stablecoin Ordinance and the U.S. GENIUS Act, both of which aim to create frameworks for stablecoin ecosystems [1].

According to Zhao, the key advantage of stablecoins lies in their real-world collateral and broader market appeal. He noted that some nations that previously opposed digital currencies are now reconsidering their stance in response to the dominance of stablecoins. Notably, China, which has banned cryptocurrency trading and mining since 2021, is reportedly exploring the development of a yuan-backed stablecoin to counter the influence of USD-pegged alternatives [1].

Zhao emphasized that CBDCs, despite early experimentation by some countries dating back to 2013 or 2014, have struggled to gain traction. He cited the Bahamas’ Sand Dollar, Nigeria’s eNaira, and Ghana’s e-Cedi as rare examples of CBDCs that have reached the adoption stage. However, the majority of such projects have stalled due to high costs, limited utility, and technical challenges. At least 10 countries—including Japan, Denmark, Finland, Singapore, South Korea, and the U.S.—have paused or canceled their CBDC initiatives in recent years [1].

The shift is further supported by the U.S. passage of the GENIUS Act, which aims to establish a regulatory framework for stablecoins. Meanwhile, the Bank of England is reportedly considering halting its digital pound project as global attention turns toward tokenized assets and stablecoins [1]. Zhao argued that the lack of demand and unclear use cases for CBDCs have rendered them less competitive in the evolving digital financial landscape.

Standard Chartered has forecasted that the stablecoin market could grow to $2 trillion in value, up from approximately $260 billion currently [1]. This projection reflects the increasing significance of stablecoins in the global financial system and supports CZ’s assertion that they are now outpacing CBDCs in terms of adoption and utility.

Source: [1] CZ says stablecoins have defeated CBDCs globally, how come? (https://crypto.news/cz-says-stablecoins-have-defeated-cbdcs-globally-how-come/)