Ever since blockchain technology advanced, stablecoins have become increasingly popular, leading to the emergence of Central Bank Digital Currencies (CBDCs). While some countries have already launched their CBDCs, others are still in the testing phase.

Most recently, TD Cowen banks warned that the House of Republicans' attempt to pass an anti-central bank digital currency bill could jeopardize bipartisan support for stablecoin legislation.

The bill, known as the Central Bank Digital Currency Anti-Surveillance State Act, proposed by House Majority Tom Emmer in 2023, aims to prevent the Federal Reserve from issuing CBDCs directly to the public.

Jaret Seiberg of the TD Cowen Washington Research Group expressed concerns on April 01, 2024, stating that linking a ban on digital currencies to stablecoin bills could undermine bipartisan backing, as Democrats see value in exploring central bank cryptocurrencies.

Countries like the Bahamas, Jamaica, and Nigeria have introduced their CBDCs relatively early. Nigeria's eNaira failed after its launch due to infrastructural shortcomings, lack of merchant acceptance, and public disinterest.

According to TD Cowen, any complications arising from this bill could make it even more challenging for stablecoin bills to be passed.

Global CBDCs & Stablecoins Market Insights

Central Bank Digital Currency (CBDC) is essentially a country's digital currency created in a digital format. Operating on a secure blockchain network, CBDCs leverage technology to establish an immutable transaction record.

A report by Statista predicts that the value of transactions processed through CBDCs will surge by 260,000% between 2023 and 2030.

Stablecoins are digital tokens pegged to fiat currencies, playing a vital role in the crypto ecosystem. These coins are usually backed by a 1:1 ratio with the US dollar.

Since February 24, 2024, stablecoin markets have experienced a 2.31% increase in trading price, reaching a market capitalization of $150.79 billion with a daily trading volume of $107.37 billion.

Crypto Market Price Analysis

A downward trend has affected the overall cryptocurrency market, with a 5% decrease in market capitalization equating to a loss of $127.926 billion over 24 hours.

In the past week, the market capitalization decreased by 5.64%, yet it has grown by 43.78% in the quarterly period. Bitcoin suffered a 5.02% drop in its trading price intraday and a 7.18% decline over the week, closing at $65,974.

While Bitcoin's market capitalization fell by 5.06%, it remains the dominant player in terms of market value.

Disclaimer

The opinions expressed in this article are solely for informational purposes and do not constitute financial or investment advice from the author or any individual mentioned.