Will stablecoins replace central banks? This is what no one tells you.
Imagine a world where you don’t need to open a bank account, where you don’t wait for 3-day transfers, and you don’t worry about your funds being frozen. This world is being built now, not by governments, but by "stablecoins.
USDT and USDC are not just intermediaries for buying Bitcoin. They are a practical experience of a parallel financial system that is faster, cheaper, and available to everyone around the clock.
But is this the end of the role of central banks?
· Monetary sovereignty is at risk: If millions use USDT instead of the local currency, how will central banks control monetary policy like interest rates?
· Direct competition: Stablecoins are "digital deposits" outside the traditional banking system. Why put your money in a bank that gives you minimal interest when you can use it in the DeFi world?
· Evasion of sanctions: We have seen how crypto is used to circumvent economic sanctions. Stablecoins deepen this phenomenon.
In summary: Central banks will not disappear overnight, but their power will slowly erode. Their reaction? Developing their digital currencies (CBDCs) to regain control.
So who will win in this battle? The old system trying to adapt, or the new system imposing itself?
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