The world of digital finance is changing rapidly, and continuous innovation is shaping how we perceive and use currency. At the WeX2025 event in Japan on August 25, Changpeng Zhao (CZ) - co-founder of Binance - made a shocking statement: stablecoins are not only thriving but also surpassing Central Bank Digital Currencies (CBDC), making many CBDC projects outdated.

This statement not only sparked a wave of debate in the blockchain community but also reflects a truth: the market is choosing stablecoins over government digital projects. So why is there such a sudden difference?

Why are Stablecoins Succeeding?

According to information from JinSe Finance citing CZ, stablecoins are gaining better acceptance in the market. Unlike highly volatile digital currencies, stablecoins are pegged to traditional assets like USD, EUR, or gold, ensuring stable value.

Stability: Stablecoins provide predictability, a crucial factor in commerce and everyday transactions.

Global accessibility: Users can transfer stablecoins across borders quickly, at low cost, and without relying on traditional banks.

Diverse ecosystem: Stablecoins are not only used for payments but also serve as a foundation for DeFi, NFTs, and many other digital financial applications.

Meanwhile, CBDCs are still struggling to find their place. Many countries have experimented with CBDCs since 2013-2014, but the results have not been promising. The issues with CBDCs lie in the following points:

Lack of differentiation: Users find it difficult to recognize the standout benefits compared to existing e-wallets or online banking.

Concerns about privacy: The ability to track every transaction by the government makes many people feel uneasy.

Slow deployment process: Administrative and policy processes make CBDCs less flexible compared to private sector solutions.

Is China Changing Its Stance on Stablecoins?

A notable point in CZ’s speech is China’s shift. Once imposing many restrictions on cryptocurrency, China is now showing signs of being more open, especially through Hong Kong's pioneering role.

Currently, Hong Kong is researching a legal framework for stablecoins, combining innovation encouragement with risk control, aiming to become a center for digital asset development. This move could create widespread impacts, prompting other countries to reconsider their approach to stablecoins.

Is CBDC Really 'Outdated'?

CZ calls CBDC 'outdated', a somewhat harsh assessment, but it accurately reflects the situation: CBDC has yet to prove its superior value over existing solutions.

To survive and compete, CBDCs need:

Bringing clear benefits that stablecoins or banking systems have yet to meet.

Addressing issues of privacy and trust.

Easily integrated into people's lives, rather than just remaining at the experimental level.

Without rapid innovation, many CBDC projects will simply remain failed experiments on paper.

Conclusion: Stablecoins - Leaders in the Digital Currency Race

CZ's remarks at WeX2025 highlighted a truth: the market has chosen stablecoins as payment and value storage tools in the digital age. Stability, global accessibility, and a rich ecosystem have helped stablecoins thrive, while CBDCs are still struggling to find their shape.

The future of currency is undeniably digital. And at least in the current phase, stablecoins have a significant advantage, becoming a powerful driver for comprehensive change in the global financial industry.

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