This paper delves into the development and potential of stablecoins and central bank digital currencies (CBDCs) within the Asia-Pacific (APAC) region. It begins by tracing the evolution of digital currencies, highlighting the emergence of Bitcoin and the subsequent proliferation of various digital assets. The focus then shifts to stablecoins and CBDCs, examining their shared characteristics, such as their reliance on distributed ledger technology (DLT) and their value being tied to fiat currencies or other stable assets. Despite these similarities, the paper underscores the significant differences between stablecoins and CBDCs, particularly in terms of their issuance, regulatory frameworks and use cases. The APAC region, characterised by its diverse and dynamic economies, is presented as a unique landscape for the adoption and innovation of digital currencies. The paper discusses the varying levels of progress across different APAC countries, with some nations leading in the development of retail and wholesale CBDCs, whereas others are advancing in the use of stablecoins. The potential benefits of CBDCs, such as enhanced financial inclusion, improved monetary policy implementation and increased security, are contrasted with the advantages of stablecoins, including accessibility, innovation and privacy. The paper concludes by emphasising the importance of collaboration between the public and private sectors in the APAC region to foster a robust and inclusive digital currency ecosystem. It also highlights the challenges that remain, such as regulatory hurdles and the need to balance innovation with control. Ultimately, the paper posits that the developments in the APAC region will significantly influence the global trajectory of digital currencies. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/ business/.
Bullock et al. (Thu,) studied this question.