Circle, the developer of the stablecoin USDC, estimates that CBDCs will harm the financial system. The company analysts have studied the Fed’s project to launch a digital dollar and have come to the conclusion the token would become an extra tool.
On the contrary, private stablecoins have already solved all the tasks set by central banks. Developers of fiat-backed tokens are constantly innovating and contributing to the qualitative improvement of the economy.
If state digital currencies are eventually launched, they will stifle innovation, and the number of startups creating products focused on the blockchain industry will drastically decrease.
Circle has emphasized the Fed has developed the concept of a digital dollar. However, it has yet to come up with a convincing mechanism that will keep CBDC holders safe.