CBDCs vs RWA-Backed Stablecoins: Competition or Convergence?
As blockchain adoption accelerates, two powerful forces are emerging at the center of digital finance: central bank digital currencies (CBDCs) and stablecoins backed by real-world assets (RWAs). Both aim to modernize money, but their approaches and philosophies differ. The question is not whether digital money will dominate the future it’s whether CBDCs and RWA-backed stablecoins will compete or ultimately converge. What Are CBDCs? Central bank digital currencies are government-issued digital versions of national currencies. Unlike Bitcoin or USDC, they are fully controlled by central banks, which oversee issuance, distribution, and monetary policy. Retail CBDCs allow citizens to hold digital money directly with a central bank, bypassing commercial banks. Wholesale CBDCs focus on settlements between financial institutions, often to streamline cross-border payments. Countries like China (with the digital yuan), Sweden (the e-krona), and Nigeria (the eNaira) have already launched pilots. The […]
