The formation of a global Central Bank Digital Currency (CBDC) alliance could reshape the stablecoin landscape but is unlikely to lead to their systematic retirement. CBDCs, backed by central banks, aim to enhance financial stability and monetary control, potentially competing with stablecoins. However, stablecoins like Tether, with a $143 billion market cap, offer unique advantages in speed, cost, and accessibility, particularly in DeFi and cross-border payments. Regulatory frameworks are evolving to balance innovation and stability, suggesting coexistence rather than elimination. While CBDCs may reduce stablecoin dominance in some markets, their private-sector innovation and user-friendly interfaces ensure continued relevance, especially in regions with limited banking access. A well-regulated ecosystem could see stablecoins and CBDCs complementing each other.