Cryptocurrencies have not found favor among most governmental entities. Any centralized unit would not feel comfortable with the pathbreaking innovation of decentralization that renders centralized entities powerless. However, the underlying thought and technology have also been molded in ways that suit centralization. The most prominent example of his phenomenon would be CBDCs. Unlike cryptocurrencies, central bank digital currencies are not decentralized. They are the digital version of the national currencies. While that may not seem like an exciting prospect, it is indeed a novel idea. When put into practical use cases, CBDCs have the potential to change the way the world transacts.
Unlike CBDCs, stablecoins do qualify as cryptocurrencies to an extent. However, they lack the fundamental quality of market volatility that every cryptocurrency goes through. It is both an advantage and a risk. Unlike other cryptocurrencies, stablecoins are pegged against national currencies. For example, the value of one $USDT will be equal to the value of $1. FOr this stability factor, a section of crypto investors has given a lot of importance to stablecoins.
The Bank of America, unlike most banks, has a more open perception of cryptocurrencies. In a recent report, they said that the future of finance will inevitably include CBDCs and stablecoins. Both these mediums will become too important and functional to not make use of. There is already considerable work going on around the areas of CBDC. Many countries are coming up with their digital currencies. It won’t take a lot of time for these entities to be an integral part of the monetary system.