1. Basic Situation#
First, there is central bank digital currency, or CBDC. As of June 2025, 11 countries and 1 currency union have officially issued CBDCs. For example, China's digital yuan, India's digital rupee, Russia's digital ruble, and so on. Among them, China is the earliest to pilot and the most widely promoted country.
At the same time, 134 countries and regions are exploring CBDCs, accounting for 98% of global GDP. Among these, 66 have entered the development, pilot, and issuance stages.
Next, let's look at the situation of stablecoins:
As of June 2025, the total market value of global stablecoins is approximately $255.4 billion. Among them, USDT accounts for 62%; USDC accounts for 23%. It is worth noting that currently, over 90% of stablecoins are pegged to the US dollar, which can basically be understood as "shadow assets of the dollar on the chain."
2. Different Uses#
Next, we look at their uses in reality, which are actually very different.
Uses of CBDC: Varies by Country
China: The digital yuan is primarily aimed at modernizing the payment system, reducing reliance on third-party payment platforms, and enhancing financial inclusion. Additionally, it also serves the purpose of facilitating the internationalization of the yuan, such as participating in the mBridge project's cross-border settlement.
India: Aims to reduce cash usage with the digital rupee, optimize the payment structure, and curb the expansion of private cryptocurrencies.
Countries like Nigeria and Jamaica: Focus more on financial inclusion, addressing the payment needs of a large unbanked population in remote areas.
Russia: For geopolitical reasons, it is developing the digital ruble as an alternative for cross-border payments outside the SWIFT system, maintaining monetary sovereignty.
Uses of Stablecoins: More On-Chain and Flexible
They serve as the "settlement currency" of the crypto market, with USDT and USDC becoming the main base currencies on exchanges.
In cross-border payments, stablecoins can achieve fast transactions and extremely low costs, making them particularly suitable for high-inflation countries and unbanked populations.
In the DeFi (decentralized finance) sector, they are core assets for lending, collateral, and liquidity mining.
In some regions with higher acceptance, they can also be used for daily payments, being convenient and less prone to depreciation.
Summary: CBDCs are government-driven digital currency infrastructures aimed at serving national strategies; while stablecoins are spontaneously formed on-chain currencies that have already become mainstream tokens in the Web3 world.
3. Different Issuers#
In addition to differing uses, their issuers are also completely different.
CBDC: Issued by the State, with Legal Tender Status
CBDCs are digital currencies directly issued by central banks of various countries, essentially "digital cash," representing national sovereign credit. For example, China's digital yuan is issued by the People's Bank of China, while the digital rupee is launched by the Reserve Bank of India. Since it has legal tender status, it has legal enforceability, and like cash, no merchant or individual can refuse to accept it.
Stablecoins: Issued by Companies or Protocols, Not Legal Tender
On the other hand, stablecoins are issued by private companies or organizations, such as:
USDT is issued by Tether;
USDC is issued by Circle in conjunction with Coinbase;
These stablecoins are usually pegged to fiat currencies like the US dollar or euro, but they are not legal tender themselves; rather, they are "digital substitutes for pegged assets."
It is important to note that currently, no country has officially issued a "national version of stablecoin." Countries that take action generally follow the CBDC route rather than joining the "stablecoin camp."
4. Different Value Stability#
In terms of value stability, the differences between the two are also very obvious.
The value of CBDC is backed by the state, with almost no credit risk.
Like cash, it is pegged 1:1 to fiat currencies, such as the digital yuan equals the yuan, and the digital rupee equals the Indian rupee. As long as the state does not encounter problems, the value of CBDC can remain stable over the long term.
Stablecoins, on the other hand, "stabilize themselves," with risks stemming from the reserve mechanism and the credit of the issuer.
On the surface, they are also pegged 1:1 to assets like the US dollar, but they rely on the asset reserves of the issuer. For example, USDT and USDC both claim to have sufficient dollar reserves to support their stability, but this requires trust in the issuer's disclosure, auditing, and management capabilities.
Moreover, there have been historical "blow-up" cases: TerraUSD (UST) in 2022 was an algorithmic stablecoin that ultimately collapsed due to a lack of real asset support, resulting in market losses exceeding $6 billion.
Summary: CBDC is stable because it "relies on national credit"; stablecoins seek stability by "relying on the issuer's reserve capacity and market confidence."
5. Different Legal Status#
The legal positioning of the two is also completely different. CBDC is legal tender and is protected by national laws.
It is issued by the central bank and has full legal effect within its country, just like cash, and can be used in all legal payment scenarios. For example, China's digital yuan has a clear legal basis for use in supermarkets, subways, or payment platforms, and cannot be refused.
Stablecoins do not have legal tender status, and their legal status varies by country.
In most countries, stablecoins are considered "privately issued digital assets," and their legality and usage depend on local laws:
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In the European Union, stablecoins have been included under the regulation of the MiCA framework, requiring issuers to obtain licenses and hold real reserves;
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In the United States, stablecoin legislation is still in progress, but future regulations may require federal oversight;
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In China, the trading and circulation of stablecoins are explicitly prohibited, categorizing them as high-risk financial products.
Summary: CBDC is "digitally recognized cash by the state," possessing inherent legality; while stablecoins are "digitally issued dollars by companies," and their legality depends on the attitudes of various countries.
6. Different Technologies and Privacy#
Finally, let's look at the underlying technology and privacy mechanisms, which are also areas where the differences are quite apparent.
CBDC: Controllable Technology, Limited Privacy
Most CBDCs do not fully utilize public chains but are developed based on consortium chains or proprietary systems controlled by central banks. For example, China's digital yuan adopts a "centralized + distributed" hybrid architecture, enabling transaction tracking and permission control.
In terms of privacy, CBDCs generally use a "controllable anonymity" design—small transactions can be anonymous, while large transactions require real-name authentication to meet anti-money laundering (AML) and regulatory requirements.
Stablecoins: Based on Public Chains, Higher Degree of Decentralization
Most stablecoins operate on public blockchains, such as Ethereum, Tron, and Solana. This means they are more open, supporting cross-chain, composable, and embedded uses, such as being integrated into DeFi, wallets, and cross-border payment scenarios.
In terms of privacy, although public chain transactions are publicly traceable, due to the lack of a centralized account system, some users can achieve a higher degree of privacy through non-custodial wallets.
However, in recent years, global regulations have also strengthened the management of stablecoin privacy and money laundering risks, with the EU's MiCA and the US's FinCEN requiring exchanges to enhance KYC and monitoring mechanisms.
Summary: CBDCs emphasize compliance and control, with privacy being "limited anonymity"; stablecoins emphasize openness and decentralization, with more flexible privacy but also facing compliance pressures.
The final question for you: If one day the whole world could use digital currency—would you prefer to use the CBDC issued by the state or the stablecoin chosen by the market? Feel free to let me know in the comments.
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