Since blockchain technology evolved, the popularity of stablecoins has grown significantly, which also gave birth to the Central Bank Digital Currency (CBDC). Some nations have already launched their CBDCs. However, several others are in pilot mode.
Most recently, TD Cowen banks noted that the efforts made by the House of Republicans to pass an anti-central bank digital currency might disrupt the support of the bipartisan party for stablecoin bills.
The Central Bank Digital Currency Anti-Surveillance State Act, introduced by House Majority Tom Emmer in 2023, would block the Federal Reserve from issuing CBDC directly to the individual.
On April 01, 2024, Jaret Seiberg, led at TD Cowen Washington Research Group, quotes, “Our concern is that linking a ban on a digital dollar to the stablecoin legislation could derail bipartisan support for the bill as Democrats generally see value to at least exploring a central bank cryptocurrency.”
The Central Bank Digital Currency of the Bahamas, Jamaica, and Nigeria were the CBDCs comparatively earlier than the others. eNaira, the CBDC of Nigeria, failed after the launch due to a lack of infrastructure, merchants, and public interest.
TD Cowen said, “We are not yet willing to declare the stable coin bill in trouble,” it added, “It is why we view any development that complicates the stable coin bill as further narrowing the path to enactment.”
Global CBDCs & Stablecoins Market Size
CBDC is a central bank digital currency. Basically, it’s the nation’s digital currency in the digital form. These digital currencies operate on a secure and transparent blockchain network; they also utilize the technology to create an immutable record of transactions.
According to a report by Statista, the value of transactions processed via central bank digital currency or CBDC is expected to grow by 260,000% between 2023 and 2030.
Stablecoins are token versions of cash, serving as crucial plumbing for the crypto ecosystem. Most of the time, the stablecoin issue entity assures the value of the specific stablecoin will be pegged in a 1:1 ratio with US dollars.
Since February 24, 2024, the stablecoin market has shifted its gears and added 2.31% to its trading price. According to CoinMarketCap data, the market capitalization of the stablecoin category is $150,794,018,058, and the intraday trading volume is $107,374,374,764.
Crypto Market Price Overview
A solid bearish momentum has dragged almost the entire crypto market downwards. TradingView said the cryptocurrency market capitalization fell over 5% and lost $127.926 Billion in the past 24 hours.
In the past seven days, the market capitalization has degraded 5.64%; however, its cap grew 43.78% in the quarterly frame. Bitcoin (BTC) barehandly lost 5.02% of its trading price intraday.
BTC’s price slipped 7.18% in the past seven days; as of writing, it was trading at $65,974. Although its market cap also fell 5.06%, it remains the market leader in terms of market cap.
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice.
