@voidborne
In 2025, Central Bank Digital Currencies (CBDCs) significantly impacted the cryptocurrency market. As 130 countries explored CBDCs, their centralized nature contrasted with decentralized cryptocurrencies like Bitcoin, increasing market volatility. CBDC developments, such as India’s e-rupee and China’s digital yuan, spurred competition, pressuring stablecoins and volatile cryptocurrencies. U.S. policies favoring stablecoins over CBDCs boosted their adoption, with stablecoin market cap reaching $227 billion. However, CBDCs’ potential for surveillance raised privacy concerns, driving demand for decentralized alternatives like Bitcoin. Currency competition intensified, with CBDCs reducing transaction costs but challenging crypto’s role as a store of value, leading to a dynamic, polarized market.
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