So what exactly are we talking about here?
CBDC stands for Central Bank Digital Currency. It's basically digital money created by governments. Think of it as your country's currency, but in digital form — like digital dollars or digital euros.
Stablecoins are different. These are digital currencies created by private companies, and they're designed to always equal $1. Companies like Tether and Circle issue them.
Here's the simple way to think about it:
Now, why should you care? Because these two are competing to become the future of money. Let's look at what's happening.
The stablecoin market just hit $310 billion. That's a record high.
The big three:
| Name | Size | What You Should Know |
|---|---|---|
| USDT (Tether) | ~$187B | The biggest. Controls 60-70% of the market |
| USDC (Circle) | ~$61B | Second place. Known for following regulations |
| PYUSD (PayPal) | ~$1B | PayPal made their own stablecoin |
Here's a wild stat: In 2024, people moved $27.6 trillion using stablecoins. That's actually more than Visa and Mastercard combined!
137 countries are working on CBDCs, but guess how many actually launched one? Just 3.
Here's where the major economies stand:
| Country | Status |
|---|---|
| 🇨🇳 China | Way ahead. Over 300 million wallets already |
| 🇪🇺 Europe | Working on it. Planning to launch in 2029 |
| 🇺🇸 USA | Banned it completely |
Wait, the US banned CBDC? Yes! In January 2025, Trump signed an order saying "No CBDC for America." Instead, the US decided to support stablecoins.