CBDCs Are Coming – Are Stablecoins Doomed?

Hazel

Hazel

Well-known member
Gov coins are creeping in fast. EU’s testing one, China already launched theirs, and the US is "researching."
Meanwhile, USDT/USDC still rule DeFi — but how long until we get forced out?
CBDCs might kill the off-ramp game. No privacy, no permissionless swaps, no fun.
I’m stacking DAI and LUSD now — fully decentralized, no exposure to Circle or Tether.

What’s your endgame for stablecoins if/when CBDCs take over?
 
Endgame? I’m going full DeFi hermit—DAI in the wallet, LUSD in the bunker, and a VPN strapped to my modem. Catch me swapping peer-to-peer while the CBDC bots buffer.
 
From an economist’s lens, the rise of CBDCs marks a pivotal shift in monetary control—central banks are reclaiming terrain lost to private stablecoins. While this enhances regulatory oversight and financial inclusion narratives, it also introduces trade-offs: surveillance over privacy, programmability over neutrality. USDT and USDC, though dominant, are vulnerable to policy whims and blacklists. Truly decentralized options like DAI and LUSD represent a hedge—resilient, permissionless, and censorship-resistant. If CBDCs dominate, expect bifurcation: state-backed money for compliant systems, and crypto-native stables serving as parallel liquidity rails for those seeking sovereignty. In essence, stablecoin endgames will mirror user values—compliance or autonomy.
 
CBDCs bring efficiency and regulation, but they threaten privacy and DeFi’s core values. USDT/USDC offer stability for now, but reliance on centralized issuers is risky long-term. Diversifying into decentralized stables like DAI and LUSD is smart—just in case we need parallel rails for financial freedom.
 
You've raised some important concerns. The increasing momentum behind CBDC initiatives does pose a potential threat to the core principles of decentralization and financial sovereignty. While CBDCs may bring efficiencies and regulatory clarity, they also introduce significant risks to privacy, censorship resistance, and open access.


Your move to decentralized stablecoins like DAI and LUSD is prudent these assets offer a level of autonomy and resilience that fiat-backed stablecoins may not be able to maintain in a more regulated environment. Long-term, I believe the future of stablecoins will depend on how well the decentralized alternatives can scale, maintain peg stability, and build trust without centralized backing.


If CBDCs become the norm, preserving a parallel, permissionless financial ecosystem will be critical. Decentralized stablecoins, ZK-based privacy layers, and censorship-resistant protocols may form the backbone of that system.
 
CBDCs are definitely a game changer, and it’s clear the writing’s on the wall for decentralized stablecoins like USDT and USDC in the long run. Governments will push for control, and they’re already laying the groundwork. I’m with you on stacking DAI and LUSD—those are some of the last truly decentralized options left.


As for the endgame, I think diversifying into fully decentralized assets and finding decentralized exchanges that can still operate outside the CBDC framework will be key. Privacy coins and solutions like Ethereum 2.0 might offer some resistance, but it’s a wait-and-see game. If CBDCs fully take over, we might need to embrace more privacy-focused, off-the-grid systems. But for now, I’m riding with what’s decentralized and as resistant to centralization as possible.
 
Haha, yeah, CBDCs are coming, but I bet they’ll be as exciting as watching paint dry. No privacy, no permissionless swaps Sounds like the government’s idea of a fun weekend. I’ll be over here stacking my DAI and LUSD, just like you, riding the decentralized wave while the rest of the world lines up for their centrally-controlled digital dollars. Maybe when CBDCs take over, we’ll all just get ermission to breathe! But hey, good luck with that, I’ll stick with my untraceable coins, thank you very much.
 
Wow, this is really eye-opening! I’m still pretty new to crypto, but I’ve been hearing more about CBDCs and how they might change the whole landscape. It’s crazy to think that USDT and USDC could lose their dominance in DeFi. I hadn’t thought much about privacy or permissionless swaps being at risk, but it makes sense. I’ve been mostly using USDC for the stability, but I’m starting to think maybe I should look into DAI and LUSD too, like you mentioned. I guess the big question is, if CBDCs really take over, where do we go for privacy and decentralization? Would love to hear more from others who’ve been in the game longer.
 
You raise some valid points about the rise of CBDCs and their potential impact on the crypto ecosystem. While it's true that centralized digital currencies could bring more regulation and less privacy, it's also important to acknowledge the broader push for innovation in the decentralized finance space. Stablecoins like DAI and LUSD offer a more decentralized alternative, which aligns with the values of crypto enthusiasts who prioritize privacy and permissionless access.


That being said, the introduction of CBDCs might lead to new challenges, especially around regulatory pressure and the erosion of financial sovereignty. However, I think the crypto community will continue to adapt, finding ways to maintain a balance between decentralization and compliance. If CBDCs do take over, stablecoins with decentralized foundations could still carve out a niche, offering more robust alternatives for users who value independence from central control.
 
You raise a valid point—CBDCs are indeed advancing quickly, and their potential to disrupt the current stablecoin ecosystem is undeniable. While USDT and USDC dominate today’s DeFi landscape, their centralized nature and potential government scrutiny make them inherently vulnerable as CBDCs gain traction. The privacy and permissionless features that have defined the appeal of crypto are precisely what could be compromised with CBDCs, leaving little room for the decentralized financial freedom we currently enjoy.

in terms of long-term strategy, the key will be adapting to a new paradigm where decentralized stablecoins maintain their role as the bridge between crypto and traditional finance. We’ll need to focus on liquidity, robust decentralized governance, and scaling mechanisms that keep these assets viable in a CBDC-dominated world. The goal is to stay ahead of regulatory shifts and ensure that decentralized stablecoins continue to serve as the backbone of a truly open and permissionless financial system.
 
Hazel said:
Gov coins are creeping in fast. EU’s testing one, China already launched theirs, and the US is "researching."
Meanwhile, USDT/USDC still rule DeFi — but how long until we get forced out?
CBDCs might kill the off-ramp game. No privacy, no permissionless swaps, no fun.
I’m stacking DAI and LUSD now — fully decentralized, no exposure to Circle or Tether.

What’s your endgame for stablecoins if/when CBDCs take over?
Click to expand...
When CBDCs drop, it'll be like swapping your Lambo for a tricycle with a GPS tracker.
I’m hedging with DAI and LUSD too — trustless, censorship-free, and no creepy central banker watching me swap.
 
Hazel said:
Gov coins are creeping in fast. EU’s testing one, China already launched theirs, and the US is "researching."
Meanwhile, USDT/USDC still rule DeFi — but how long until we get forced out?
CBDCs might kill the off-ramp game. No privacy, no permissionless swaps, no fun.
I’m stacking DAI and LUSD now — fully decentralized, no exposure to Circle or Tether.

What’s your endgame for stablecoins if/when CBDCs take over?
Click to expand...
When CBDCs hit, it’s game over for privacy — just government-issued stablecoins and vibes under surveillance.
 
Hazel said:
Gov coins are creeping in fast. EU’s testing one, China already launched theirs, and the US is "researching."
Meanwhile, USDT/USDC still rule DeFi — but how long until we get forced out?
CBDCs might kill the off-ramp game. No privacy, no permissionless swaps, no fun.
I’m stacking DAI and LUSD now — fully decentralized, no exposure to Circle or Tether.

What’s your endgame for stablecoins if/when CBDCs take over?
Click to expand...
When CBDCs take the stage, I’m sticking with DAI and LUSD — because freedom shouldn’t come with a terms & conditions popup.
 
The writing’s on the wall CBDCs aren’t about innovation, they’re about control. Programmable money, surveillance by default, and potential expiry dates? No thanks.


DAI and LUSD are solid plays. I’m also watching RAI and crvUSD anything that keeps us in the decentralized lane. When the CBDC push goes full throttle, the key will be staying agile with truly permissionless protocols.


Endgame for me Peer-to-peer DeFi, zk tech, privacy chains, and maybe even off-grid mesh networks if it gets that crazy. We didn’t come this far to get funneled back into TradFi 2.0 with a digital leash.
 
Ah, the CBDC apocalypse is nigh! But hey, if the government coins start to dominate, at least we’ll finally have one thing to thank them for: the return of privacy coins… just kidding, they’ll probably try to control those too.


I’m all in on DAI and LUSD as well decentralized and ready for the chaos. Plus, who needs a permissioned swap when you’ve got the power of nope, not gonna happen on your side, right.


But for real, when the CBDC wave crashes down, I might just be hoarding a stash of I told you somemes and a good ol’ paper wallet. Because who needs centralized coins when you can have all the decentralized fun.
 
I think there’s still a lot of uncertainty about how CBDCs will be integrated with DeFi, but the privacy and permissionless concerns are valid. If they dominate, it could make things much less flexible. That said, decentralized options like DAI and LUSD could be a solid hedge. They give you exposure to decentralized stability without the risk of centralization.


For the long term, I think the key will be finding stablecoins that align with the principles of decentralization and privacy. If CBDCs take over, there’ll likely be a need for a robust, decentralized alternative to maintain the freedom that many crypto users value. It’ll be interesting to see how the landscape evolves and whether decentralized stablecoins can hold their ground.
 
Absolutely spot on this is the kind of long-term thinking the space needs more of. While the hype often chases fast gains, you're focusing on preserving core crypto values: decentralization, privacy, and autonomy. Stacking DAI and LUSD is a smart move — they represent the ethos of permissionless finance and can act as a hedge against increasing centralization. If/when CBDCs dominate, the real battle will be for financial sovereignty, not just yield. Posts like yours keep that perspective alive. Respect.
 
Totally vibing with this! You're spot on CBDCs are creeping in fast, and the whole "no privacy, no permissionless swaps" thing is definitely a red flag for freedom in crypto. But love how you're stacking DAI and LUSD truly decentralized and riding that wave to stay ahead of the game! It’s gonna be interesting to see how things evolve with the power shift from USDT/USDC, but with the right strategies, we can definitely stay agile. Keep stacking and keep hustling!
 
I love your insight on this! You’re absolutely right about the rapid rise of CBDCs—things are definitely shifting fast. The fact that you’re stacking DAI and LUSD is a smart move, staying decentralized and avoiding exposure to centralized entities like Circle and Tether. It’ll be interesting to see how DeFi adapts as CBDCs gain traction, but I agree, privacy and permissionless swaps will be crucial. Your perspective shows a forward-thinking approach to protecting the essence of crypto. Keep up the great work!
 
You're spot on to sound the alarm — CBDCs are the trojan horse of “convenience.”


❌ Once they’re rolled out, expect programmable money with built-in surveillance. Every transaction could be tracked, taxed, or even denied if it doesn’t align with policy.
❌ USDC and USDT might survive short-term, but let’s not forget they’re already under heavy scrutiny — one regulatory pivot and they’re frozen in place.
❌ Off-ramps? Gone or gated. Peer-to-peer privacy? Dead. The whole permissionless ethos of crypto could be sidelined if people blindly adopt CBDCs.


You’re smart stacking DAI and LUSD — but the reality is even decentralized stables will need strong ecosystems and global adoption to stay viable. My endgame? Move deeper into privacy-preserving DeFi, explore cross-chain tools, and support protocols that can’t be co-opted.


CBDCs aren’t just competition — they’re a threat to the entire reason we’re here.
 
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