The battle of CBDCs and stablecoins: the future of digital money (Part 1)

The digital finance landscape is undergoing a seismic shift as central banks push forward with central bank digital currencies (CBDCs) whilst private entities develop stablecoins as an alternative. According to the OMFIF report, "Global Progress on Central Bank Digital Currencies Despite Hurdles", 81% of central banks are actively exploring CBDCs, with 47% expecting to launch one within five years. The European Central Bank (ECB) and the Bank of England are advancing retail CBDC plans, whilst emerging markets such as Brazil and Ghana are leading blockchain-based pilots. Brazil’s central bank, for instance, is aiming to roll out its digital currency, DREX, by 2025, with three successful transactions already completed in its pilot program. And the push for change goes beyond innovation - it is about driving competition, increasing financial inclusion and making financial services accessible to all. The success stories of systems such as Kenya's M-Pesa, Brazil's PIX and India's UPI highl…