Stablecoin vs. CBDC: Key Differences Explained

Stablecoin vs. CBDC: What’s the Difference? 🤔

Though they may seem similar, stablecoins and CBDCs serve different purposes and are built on different foundations.

🔹 What is a Stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to reserve assets like fiat currencies (USD, EUR), commodities (e.g., gold), or a basket of assets.

🔹 What is a CBDC?
A CBDC is a digital version of a national currency, issued and fully regulated by a country’s central bank. It’s legal tender in digital form - secure, stable, and government-backed.