CBDCs are pretty much just fully digitized dollars with likely far more restrictions. Not sure about the economic impact being good or bad, but it's surely bad for the privacy of the masses.

This is a misunderstanding. Not all stable coins are CBDCs. CBDCs are Central Bank issued Digital currencies. Focus on Central Bank. They don't even have to be cryptocurrencies.


CBDCs are just a (another) digital form of the local currency. So the big economic impact can be only over the card processing companies (like Visa/Mastercard) which, in case of CBDCs will no longer earn millions from fees (of course, the shops will earn by not spending for those fees). And, as said, it's expected CBDCs will have a massive negative impact on privacy of its users.

I believe anything that reduces friction in how payments are made and consequently how services and goods can be consumed is good for the economy.

That being said, I'm wary of CBDCs. If introduced, I believe it could give people the illusion of control over their own money. Aside from privacy problems, CBDCs will likely be just as easily frozen as regular bank accounts. Don't expect the permissionlessness of cryptocurrencies -- If physical cash wouldn't already exist, no way in hell governments would introduce it today.

We're still don't know how easy and convenient to use CBDC rather than using current third party online payment e.g. Paypal, if it's more easier then I expect CBDC will have a slight good impact for the economy, but if it's similar like using Paypal, where it took a few days or more about the transaction, I don't expect any result then.

I'd say CBDC is an overrated discussion while the use cases aren't completely different with fiat on online payment.

In my opinion CBDC's once they start to be implemented they will be pictured as a good thing for economy, also they will be designed to be easy to use by the end user and as a frictionless payment method between people and between people and companies, I suspect there will be even promotions and bonuses by paying with CBDC.

Banks will surely require citizens to have their own CBDC account and there will be an official app on the Play Store/ iStore.

On one hand, if CBDC's manage to get a huge percentage of adoption, their frictionlessness may force other payment processors to improve their services and customer management in order to avoid getting out business and CBDC's could even stimulate consumerism & credit (both being critical components of nowadays capitalism).

So there is a chance CBDC could make a positive impact in the economy of their countries, however, the price to pay for this (loss of individual privacy and other civil rights) do not seem worthy to pay.

The effect of CBDC may cause some business aspect to suffer while some will have more bull in them because of the payment system. If the digital currency starts operating fully then more than before, more businesses will go online and those that couldn't will keep staying physical and may not get enough attention and patronage. It will be like source of living shifting from one person to another person. It will be easier to make payment for products or services done online with digital currency than fiat. Apart from banks income in fiat it will affect common business owners that won't be able to go digital and less attention and liquidity will go to fiat.

My question is to you does paper cash good for the economy? I do not find any difference between paper cash and CBDC expect their appearance. You can touch paper cash it has a physical form and you can not touch CBDC it's a digital form of paper cash. As long as govt has full control to print money and increase money circulation, the main problem in our economy inflation will not be solved.

I don't think CBDCs have actually gained much popularity, to be honest. There've been several countries looking into them and a few experimenting with a CBDC trial over some area over some time, and it seems to be legal tender in Nigeria (eNaira), but that's probably it. I'm surprised, actually, that they didn't gain more attention.
Overall, I think it can help with digitalization of the economy and empower the Central Bank of the state while possibly weakening private banks a bit. But it's neither good nor bad for economy on its own, as it's not a significant change: just a step up of fiat (but also a step away from privacy because there's no cash version and I think CBDCs probably require IDs of people, but I'm not sure).

Why are stablecoins better than CDBC?
At least with a CDBC, you will know 1 dollar is one dollar, with stablecoins you find out in the morning a UST is equal 2 cents.
Besides, even if stablecoins would be able to keep their peg, they are still doing this to a currency controlled by the same government that issued those CDBCs so, what's the advantage?
Let's add the fact that with stablecoins you don't have to worry only about the government freezing your account but by the ones issuing those stablecoins on top of that like tether has been doing for ages.

So, any reason why somebody would use them over CDBC?

It's hard to talk if CBDC is good or bad for the economy if they don't even exist. And there's actually not that much interest in them as you might think. It's just that officials from some countries are saying a few words about them a few times per year. But there's no indication that countries are making serious effort to create such systems.

In general, I see no mechanism for CBDC having any significant effects on the economy. It's just a payment methods. It doesn't allow you to fund projects in some new ways, or combat inflation or boost consumption. So ho can it be good or bad for the economy?