10/ Do they compete?.Not really. CBDCs solve domestic policy problems. Stablecoins solve global liquidity and interoperability. Think of them as complementary, not rivals.

9/ Why CBDCs matter:.✅ Government-backed trust.✅ Strong use case for domestic payments.✅ Potential for financial inclusion where banking access is limited.

8/ Trust factor:.Stablecoins: trust comes from the issuer’s reserves & audits. CBDCs: backed by sovereign guarantee of the central bank. Both models create trust — one through private transparency, the other through government authority.

7/ Programmability:.Stablecoins: integrated into DeFi, NFTs, DAOs, lending, trading. CBDCs: mostly payment-only focus, with limited programmability (by design). Stablecoins = innovation playground. CBDCs = safe rails for fiat.

5/ Speed & Settlement:.Stablecoins: 24/7 instant settlement across borders. CBDCs: Likely faster than banks, but still subject to government rails. If you want to send $100 to someone abroad → Stablecoins already do it in seconds.

4/ Adoption today:.Stablecoins: ~$160B in circulation globally 🌍.Used across DeFi, remittances, payments, trading. CBDCs: <20 countries in pilot/launch phases. Most are still experimental, not widely used.

3/ Key differences 👇.Issuer: Stablecoins = private companies | CBDCs = central banks.Flexibility: Stablecoins live across chains | CBDCs usually tied to one infrastructure.

2/ CBDCs = central bank digital currencies. Issued directly by governments, designed for monetary policy, inclusion, and domestic use cases.

1/ Stablecoins = crypto-native dollars. Built on open blockchains, available 24/7, borderless, programmable. They’ve become the backbone of DeFi, trading, and global payments.

Thread: Stablecoins vs CBDCs 🪙🏦.Both are digital money — but they play very different roles. Let’s break it down 👇

7/ That’s why stablecoin issuers love more adoption → more supply in circulation → more $$$ from yield. Stablecoins aren’t just “digital dollars.”.They’re efficient financial engines keeping crypto liquid, stable, and global.

6/ Note that:. Stablecoin issuers don’t rely on risky products or hidden fees. They monetize in a transparent and sustainable way.

5/ Secondary ways they make money:. Fees on mint/redemption (usually institutional).Partnerships & integrations (exchanges, fintechs pay for liquidity & branding).Float (cash held before redemption requests are processed).

4/ That’s the primary revenue stream:.🟢 Reserves invested in short-term, low-risk assets.🟢 Issuer pockets the yield.

3/ Example:.USDC circulation = ~$30B.If Circle parks that in US Treasuries at ~5% yield → that’s $1.5B per year in interest income.

2/ Every USDT, USDC, or similar stablecoin you hold = backed (in theory) 1:1 by cash or safe assets like T-Bills. Those assets aren’t just sitting idle. They earn interest. And guess who keeps it? The issuer.

1/ Stablecoins aren’t just “digital dollars.”.Behind the scenes, issuers are making serious $$$. Here’s how the business works 👇

The overall picture nowadays!

Decentralized Stablecoins(Like $DAI or $LUSD) vs Custodial Stablecoins( $USDT or $USDC). Which one do you prefer?.Let us know in the comments!.