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.

I don't think there is a strict definition for what a CBDC must be aside from that it's central bank managed.

Realistically it would end up being some API to some server, like Stripe, with all the risks associated.

That doesn't mean we'd be able to use it in the same way we use onchain stablecoins. Like, I can't put it in my smart wallet with programmable security, I can't use it as collateral for AAVE, I can't tip on Warpcast with it, etc.

Even the most optimistic case, where a CBDC is deployed onchain in a somewhat compatible way, then it just becomes another stablecoin. What's there to demolish? USDC did not demolish USDT, or EURC, etc. If anything, the usage of stablecoins has just increased with more availability in different markets.