Central bank digital currencies (CBDCs) vs stablecoins: which will shape the future of money?

The Bank of International Settlement estimates that for every 10% adoption of digital money, a country’s GDP increases by 1% over a two-year period. Real-time payments are transforming the global economy, projected to boost increase GDP by 74% - i.e. $285.8 billion and create 167 million new bank accounts by 2028, especially in emerging markets. With significant savings in transaction costs and increased financial inclusion, the question arises: how will this rapid adoption reshape global financial systems? Digital money has evolved rapidly in recent years, with central bank digital currencies (CBDCs) and stablecoins emerging as two dominant forms of digital money. CBDCs are digital forms of a country's sovereign currency, issued and regulated by the nation’s central bank and designed to function (much like physical cash) but in a digital form. And, whilst both are transforming the future of finance, they represent distinct approaches: CBDCs are government-issued and backed by central…