Stablecoins and central bank digital currencies (CBDCs) may seem like two sides of the same coin in terms of providing stable value. However, crypto-stable assets can offer completely different use cases that CBDCs simply cannot compete with. The key is programmability, where smart contracts can automate and add new functionality to currencies. Programmability allows for asset backing and decentralization, which is not possible with current CBDC designs. Developers should take advantage of the programmable opportunities offered by stable assets rather than trying to compete with CBDCs.

Stablecoin issuers have made it clear that they can improve the current monetary system in three main ways. First, stablecoins help reduce the costs of traditional financial activities, such as decentralized lending through DeFi and remittances. Second, in countries experiencing hyperinflation, people use stablecoins as a means of protecting income and stabilizing payments, such as through Venezuela's Reserve Protocol. Third, stablecoins can be used for more privacy-focused payments, such as MobileCoin (MOB). These three purposes of stablecoins fall within the framework of today's financial system. Therefore, it is worth noting that CBDCs can theoretically also solve the problems that stablecoins solve. (Cointelegraph)