Which is the future of money: cryptocurrency, CBDC or stablecoins?

Alex Tapscott, co-founder of The Blockchain Research Institute, claims: “​​Money, one of humanity’s greatest and most enduring creations, is once again on the brink of a historic transformation… money is taking another great leap forward: It is becoming entirely digital”.

There are three applicants who can replace the money we are used to:

🪙 Public cryptocurrencies like Bitcoin, which was designed from the outset like digital cash. Bitcoin is widely used as a store of value and medium of exchange, and is permissionless and censorship-free, making it a favourite among freedom fighters. It is also energy-intensive and volatile, just like gold and other commodities.

🪙 CBDS (central bank digital currencies). It is created by governments and central banks as a better alternative that can make the economy more inclusive, reduce volatility and improve the response of central banks to crises. But because of the troubling impact on civil liberties, CBDCs are likely to be more successful in authoritarian countries.

🪙 Stablecoins are something of a cross between CBDC and cryptoassets. It’s digital assets issued by companies backed by fiat currencies held by financial institutions. There are also decentralised stablecoins – the synthesis of privately issued money and public crypto assets. Many experts advise paying attention to them.