Perhaps another stupid/newb question but: A CBDC basically demolishes the use case of stablecoins, right? I understand that current Trump policy has buoyed people's hopes of throwing CBDCs into the ash heap of history, but highly contentious and partisan-aligned policies are not very, uh, stable nowadays. I can easily see this seesawing between administrations. And in the event of a financial crisis? Forget about it. I think the opening for monetary innovation in that event would put CBDCs squarely back on the table.

If it were to happen, yes.

But:

1. If the STABLE Act passes, would require a repeal and replace. Which would be much harder.

2. If stablecoins continue to grow, they will be a big business for banks, so would expect a lot of lobbying against.

3. The analogy here would be trying to move email over to the Postal Service in the 1990s. Once it's out there as a protocol, very hard to unwind culturally.

Working on Farcaster and Warpcast. Longer thoughts at https://dwr.email

The key point here is, entrenched protocols are politically durable. Especially once the private sector latches on. Banks making money off stablecoins is the most underrated moat