How will Central Bank Digital Currencies (CBDCs) affect the liquidity of stablecoins?

Darokshi

Member
The introduction of CBDCs may significantly influence the liquidity dynamics of stablecoins in the cryptocurrency market. As CBDCs provide a government-backed digital alternative, they could draw users away from stablecoins, reducing their trading volumes. This shift may lead to increased volatility and challenges in maintaining stablecoin peg mechanisms.
 
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