Congress Is Trying to Ban the Digital Dollar. What Does That Mean for Crypto Stocks?
Digital dollars lost momentum years ago; the real competition for crypto stocks is traditional finance, not government on-chain money.
Overview
Digital dollars, also known as central bank digital currencies (CBDCs), are government-backed blockchain versions of actual dollars and are one of several ways to move money on-chain. Another is stablecoins, digital tokens pegged to traditional currencies and issued by banks, crypto firms, or other entities, which have gained traction in recent years.
On the face of it, a digital dollar ban would be good for stablecoin-focused crypto stocks, such as Circle Internet Group (NYSE: CRCL) and Coinbase Global (NASDAQ: COIN). However, in reality, digital dollars fell by the wayside years ago, and the on-chain battle is between traditional financial firms and stablecoin issuers.
Details
The big appeal of blockchain transactions is their low costs and fast settlements. Today, the on-chain money space is a mish-mash of projects, with existing players exploring partnerships with various cryptocurrencies, crypto firms, and other banks and payment providers. Many are piloting several projects at once, as it isn't clear what shape this potentially lucrative market could take.
Source
Originally published at www.fool.com.