Zhao Declares CBDCs Outdated Due to Stablecoin Success
Binance’s former leader, Changpeng Zhao, argues that central bank digital currencies (CBDCs) are now obsolete, overshadowed by the popularity of stablecoins.
At Tokyo’s WebX conference, Zhao noted that at least ten countries have scrapped their CBDC initiatives because of low public interest and other issues. This shift highlights how governments view the advantages of stablecoins over state-backed digital money.
Governments worldwide are now focusing more on stablecoins due to unmatched market acceptance.
- Hong Kong introduced a Stablecoin Ordinance.
- The U.S. passed the GENIUS Act to regulate fiat-backed assets.
This trend confirms Zhaos’ belief that stablecoins offer real-world advantages compared to CBDCs.
Even skeptical countries like China are warming up to the idea and exploring yuan-backed stablecoins. Still,moast nations are ditching outdated CBDC projects.
Standard Chartered predicts stablecoins will hit $2 trillion in value, proving their growing importance.
some CBDCs, such as the Bahamas’ Sand Dollar, did make progress but faced notable challenges, unlike widely accepted stablecoins.
Countries like Japan,Denmark,and the U.S. are canceling their CBDC pilots due to high costs and limited practical uses.
Zhao suggests shifting efforts toward payment innovations, signaling the future point for financial tech.
