CBDC vs. stablecoins on Cardano

Central Bank Digital Currency (CBDC) is a digital form of fiat money issued by a central bank. We believe you have all heard of this phenomenon. Many central banks around the world are in the research phase, development phase, or have completed their first pilot programs. CBDCs are even already in use in three countries and their number will almost certainly grow in the coming years. Some experts warn that CBDC poses risks associated with loss of privacy, or it may even be a tool for governments to control residents. Why should people adopt CBDC in the first place? Wouldn’t we be better off using stablecoins on Cardano? To know the answers, we need to look at why central banks are working on CBDCs. Let’s compare CBDC with stablecoins on Cardano. Can these two technologies coexist?


  • CBDCs can be tokenized similarly to USD-backed stablecoins.
  • It is not necessary to look at CBDC and blockchain as two competing solutions but as complementary networks.
  • The CBDC effectively suppresses the right to privacy as well as the right to possess value. Transactions through the Cardano ecosystem can be private and you can own the value.
  • Central banks can retain full control over monetary policy while giving people the freedom to choose what specific networks to use.
  • CBDC tokenization will allow the separation of the needs of central banks from the right to privacy and self-custody.
  • Central banks could mint at least part of the CBDC on SC platforms to make it easier for people to access.

This article was prepared by Cardanians with support from Cexplorer.

Read the article: https://cexplorer.io/article/cbdc-vs-stablecoins-on-cardano