Liability
As a central bank liability, CBDCs are backed by the state, similar to traditional fiat currency, which could enhance trust and stability.
Stablecoins are not liabilities of a central bank; their value is tied to their backing assets, which can include fiat currencies, commodities, or algorithms.
Legal Status
CBDCs are mainly in pilot stages and not yet widely implemented across countries, with legal frameworks under development as central banks evaluate their potential.
Stablecoins are actively used and traded, with increasing legal clarity and regulatory frameworks being established to address concerns like depegging and reserve transparency.
Regulation & Issuance
CBDCs are exclusively issued by central banks, which centralize the governance process and maintain full control over monetary policy and currency distribution.
Stablecoins can be issued by a variety of regulated or unregulated entities, including private companies, and governance may be decentralized, shared among various stakeholders.
Geographic Adoption
CBDCs are generally designed for use within a specific country, with some having capabilities for international transactions, but focus remains on domestic applications.
Stablecoins are designed for global use, enabling seamless cross-border transactions and providing a digital currency option for international trade and remittances.