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Future Money: Stablecoins, CBDCs, or Deposit Tokens?
6 Jan
Summary
- Stablecoins face challenges beyond regulation and trust.
- CBDCs and deposit tokens may use closed networks for security.
- Digital currencies could reshape geopolitics and superpower rivalries.
The financial landscape of 2026 is set for a significant evolution with stablecoins, central bank digital currencies (CBDCs), and deposit tokens vying for dominance. Stablecoins, having experienced a surge in 2025 following regulatory clarity, still grapple with fundamental questions about their long-term stability and trustworthiness, as they lack deposit insurance and direct access to central bank liquidity.
Alternative digital currency forms are emerging. The Trump administration's stance against a US CBDC contrasts with the progress of China's e-CNY and the anticipated digital euro by 2029. Meanwhile, banks are exploring tokenized deposits to retain customers amidst concerns about stablecoins offering interest indirectly. These innovations signal a potential shift towards more controlled, closed-network systems for CBDCs and deposit tokens.
The evolving digital currency ecosystem promises to enhance payment efficiencies through smart contracts and could reduce cross-border transfer fees. China aims to stimulate consumption with e-CNY, while developed nations explore CBDCs for social subsidies. The geopolitical implications are profound, with nations navigating how digital currencies could challenge or bolster their influence on the global stage.
