A recent statement from Binance co-founder Changpeng Zhao at the WeX2025 event has sparked discussions about the position of stablecoins and CBDCs.
Why Are Stablecoins Surging Ahead?
Changpeng Zhao noted that stablecoins, backed by real-world assets, have achieved significantly greater market acceptance than CBDCs. This is due to their stability and lack of volatility, making them appealing for everyday transactions.
What Makes Stablecoins More Appealing Than CBDCs?
Key advantages of stablecoins include their stable value, accessibility for cross-border transactions, and support for innovation in a wide array of digital assets. CBDCs face hurdles, including privacy concerns and slow implementation.
How is China's Stance on Stablecoins Evolving?
Changpeng Zhao observed a shift in China's approach to stablecoins, noting that Hong Kong has begun actively exploring frameworks for their implementation, indicating a growing recognition of their potential even in strict financial jurisdictions.
Changpeng Zhao emphasizes that stablecoins currently dominate the digital currency space, offering advantages that CBDCs have yet to provide and which have not gained widespread popularity.
