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11 potential impacts on crypto and the market from the rise of CBDCs

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The ultimate impacts of CBDCs on the crypto industry may be a mixed bag of positives and negatives, and insiders need to monitor developments.

In June 2023, the Atlantic Council, based in the United States, announced the results of a study on global nations’ interest in and progress toward creating their own central bank digital currencies. Eleven countries have already launched CBDCs; 130 others are in the exploratory phase, and about half of those have begun the development process.

Market watchers cite multiple factors behind governments’ push toward CBDCs, from the decreasing use of cash by the general population to geopolitical tensions and events. Whatever the underlying reasons, though, crypto industry players need to keep an eye on developments and consider how the rise of CBDCs could impact the industry and global marketplace. Here, 11 members of Cointelegraph Innovation Circle share their predictions for possible outcomes from the ever-expanding development and introduction of CBDCs.

A boost in the uptake of cryptocurrencies

CBDCs manifest the “if we can’t beat them, join them” attitude of governments in response to blockchain technology. In the short to medium term, CBDCs could help legitimize crypto but struggle to compete in utility and benefits, likely leading to a boost in the uptake of cryptocurrencies. In the long term, governments may attempt to stealthily “phase out” crypto as CBDCs mature and gain relevancy. – Sheraz Ahmed, STORM Partners

Deepened importance of decentralization

CBDCs are still largely unknown territory. The risks to personal freedoms are real. A potential crypto industry impact is the deepened importance of decentralization, privacy and other forms of the human rights of freedom and self-determination. – Tiago Serôdio, Partisia Blockchain

Tighter regulations

The rise of CBDCs may validate blockchain technology and cryptocurrencies, boosting public familiarity with and acceptance of digital assets. However, this could also bring tighter regulations, impacting existing crypto market dynamics. It’s a delicate balance between validation and regulation. – Tomer Warschauer Nuni, Kryptomon

Recognition of stablecoins as CBDCs

CBDCs are an almost inevitable game theory of governments trying to copy or provide an alternative to decentralized money, but with government trust anchoring the confidence. With USDC and USDT being backed by bonds now through BlackRock, I would say that the USD-based stablecoins that are prevalent are already a form of CBDC, since governments can monetize and mint digital USD through debt. – Jagdeep Sidhu, Syscoin Foundation

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Cryptocurrencies being viewed as competition

The rise of CBDCs could have both positive and negative impacts on the crypto industry. One con could be that governments might perceive CBDCs as competition to private cryptocurrencies. However, on the other hand, CBDC adoption plays well for the larger narrative of the adoption of blockchain technology and cryptocurrencies. – Abhishek Singh, Acknoledger

A bridged gap between Web2 and Web3

CBDCs could help bridge the gap between Web2 and Web3. If they are allowed to coexist with crypto, CBDCs can actually reduce friction between the traditional finance and decentralized finance worlds. For example, these new payment systems could serve as an on- and/or off-ramp for people trying to convert fiat into crypto. So instead of killing crypto, CBDCs could actually help Web3 become more accessible than ever. – Wolfgang Rückerl, ENT Technologies AG

New curiosity about other crypto offerings

While there’s much anxiety about the development and rollout of CBDCs, industry leaders should embrace their inclusion as a new avenue for entering the DeFi space. The normalization of crypto by governments could inspire otherwise reluctant participants to develop curiosity about other offerings available throughout the space. Then, the true test for CBDCs can become how they survive the free market. – Oleksandr Lutskevych, CEX.IO

A more diverse product landscape

CBDCs are a double-edged sword, because while they drive the adoption of digital currencies, they do so at the expense of sacrificing a core value proposition of cryptocurrency: decentralization. It is unrealistic to assume CBDCs will not emerge, since many on-chain products are needed to ultimately build out a diverse landscape of products that can serve all levels of consumers. – Megan Nyvold, BingX

More access to financial services for the unbanked

Increased financial inclusion and credit access for the unbanked population is one valuable utility of CBDCs, since non-bank payment system providers can distribute CBDCs, eliminating the need for a traditional bank account. The rise of CBDCs would allow individuals without bank accounts to build credit and access lower-interest-rate loans if CBDC data is shareable with banks. – Vinita Rathi, Systango

Heightened focus on existing cryptocurrencies

CBDCs will lead to a heightened regulatory focus on the crypto industry. As central banks begin to explore CBDCs, they will also be conducting research and risk assessments on the existing crypto ecosystem, which could lead to policy changes. Experts debate CBDCs’ impact on anonymity and decentralization while acknowledging their role in mainstream adoption and familiarity with digital currencies. – Anthony Georgiades, Pastel Network

Nothing of significance

I see no material effect; it’s net-neutral, in my opinion. Although CBDCs further legitimize blockchain technology, to a degree, that is offset by the fact that the CBDCs will run on private blockchains (such as Hyperledger), where there is no need for a token. On the fringe, maybe it pushes a few skeptics over the edge in terms of validating the space. – Timothy Enneking, Digital Capital Management


This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.

Learn more about Cointelegraph Innovation Circle and see if you qualify to join.

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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