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Home » From stablecoins to CBDC: money is being redefined
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From stablecoins to CBDC: money is being redefined

Vickie HelmBy Vickie HelmFebruary 19, 2026No Comments8 Mins Read
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From stablecoins to cbdc: money is being redefined
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Disclosure: The views and opinions expressed herein belong solely to the authors and do not represent the views and opinions of crypto.news editorials.

Anyone paying real attention to the stablecoin market knows that these assets are firmly entrenched among the most important components of the modern digital economy. By late 2025, the market capitalization of stablecoins will already exceed $300 billion, which shows how much trust people have in stablecoins.

summary

Stablecoins have crossed the threshold. With market capitalization exceeding $300 billion and card usage skyrocketing, stablecoins are no longer an experiment and are becoming core payment infrastructure. Banks are reacting rather than leading. Almost half of banks have integrated stablecoins, and CBDCs show that central banks are adapting to the rails already built by cryptocurrencies. Liquidity is the real backbone. Yield-enhancing DeFi protocols transform idle capital into a powerful 24/7 payment infrastructure, making programmable money scalable.

Stablecoins are popular today because they are fast, borderless, and increasingly reliable. They move value instantly and behave predictably in a way that traditional payments cannot. It is no longer a question of whether stablecoins will survive or not. The real question is how will they be recruited and who will drive that adoption?

The passage of the GENIUS Act in the US was a strong signal that stablecoins for payments are entering a new phase. And regulations aren’t just being put in place to slow down the industry. Instead, they are stepping up to give stablecoins a clear role in the broader financial system. For the first time, we see a clear path introduced for payment stablecoins to operate in parallel with the TradFi system, rather than simply existing on the edge. These are becoming active as a viable payment tool alongside traditional financial products.

Deployment is already happening, but outside the traditional rails

I think it’s important to mention that outside of formal, large-scale integration by major payment platforms, adoption is spreading at its own pace. A growing number of fintechs are building products at the intersection of cryptocurrencies, stablecoins, and payments. Companies such as ether.fi, Monerium, and Holyheld are already enabling the use of stablecoins in the real world through their financial tools and services. One particularly noteworthy case is the rapid increase in crypto cards used for everyday spending by cryptocurrency users. A Q3 2025 study showed that just over 60% of surveyed users are already using these cards for transactions and everyday purchases.

Meanwhile, data from major companies like Visa shows that the issuance and spending of crypto cards has increased significantly year-over-year. From January to December 2025, gross transaction volume increased by 525%, with net spending reaching $91 million by year-end. All of this evidence points to cryptocurrencies rapidly gaining mainstream adoption, with stablecoins becoming the primary means of powering those cards.

This usage also highlights another trend that is becoming more prominent: the increasing role of non-USD stablecoins. Assets like EURe and more recently ZCHF are finding real demand in payment flows, especially in Europe and Switzerland where users value on-chain payments without unnecessary dollar exposure.

Euro-denominated stablecoins are rapidly evolving based on crypto market regulations, and Europe currently has multiple compliant euro stablecoins with real trading volumes and fintech integration. Recent reports show that over the past few years, the total transaction volume of euro stablecoins has grown to more than 8 billion euros, indicating that non-US dollar stablecoins are gaining increasing attention.

The role of banks in the introduction of stablecoins

Naturally, this change raises questions about where traditional banks fit into the picture. Many believe that banks will be central to future stablecoin adoption. And it’s true that they’re getting more attention now. This asset class has grown to a point where it can no longer be ignored, and public recognition of its importance is becoming more common.

A recent survey showed that by 2025, 49% of banks, including some Tier 1s, will have already integrated stablecoins into their operations. In Switzerland, for example, more than half of the banks actively offering cryptocurrencies plan to also include stablecoin-related services.

Looking ahead, I think we may see even bigger changes as central banks start introducing CBDCs like stablecoins. Some, such as the European Central Bank (ECB), are already exploring this direction, particularly considering wholesale CBDCs for interbank payments rather than retail use.

These projects include active cooperation between the central banks of France, Germany, Italy and other countries. And if these efforts are successful, and large-scale CBDCs eventually begin to operate on public blockchain infrastructure, perhaps even on platforms like Ethereum (ETH), the impact will be enormous. It will be a seismic shift in what happens inside the global financial system and how money moves across borders.

Consumers and the rise of redeemable stablecoins

But I think it’s consumers who will drive more adoption of stablecoins, especially compared to banks. Throughout 2025, we saw more and more use cases for redeemable stablecoins in general financial activities. Major payment networks such as Visa and Mastercard are integrating these assets into their infrastructure, offering payment solutions and merchant acceptance that extend the utility of stablecoins into mainstream payments.

Redeemable stablecoins provide more options for everyday transactions such as payments, transfers, savings, and simple on-chain interactions. There’s none of the friction of legacy systems. From the average user’s perspective, this is a clear improvement.

As such, I expect consumer adoption of redeemable stablecoins to be one of the key drivers supporting the continued growth of this market as we head into 2026. Broadly speaking, people adopt financial tools because they work, and stablecoins actually work. If a coin is easy to use, settles instantly, and can be redeemed without too much effort, it’s likely to find users.

Banks may eventually integrate these tools, but as mentioned above, in most cases they will be reacting to actions that already exist, rather than initiating action.

Role of decentralized stablecoins

Alongside consumer stablecoins, fully decentralized stablecoins will continue to be essential for on-chain finance. Although these assets can be used for retail payments, they are not primarily designed for that purpose. What they’re actually doing is power smart contracts, automated payments, derivatives, and decentralized lending.

These form a programmable layer that allows financial logic to be executed without intermediaries. Yield enhancement protocols often rely on these decentralized assets to work reliably. In other words, as consumer use of stablecoins expands, decentralized stablecoins will power the infrastructure behind their use. Together, they create a practical and resilient system.

Yield Enhancement Protocol: Liquidity as Infrastructure

It is important to note that none of these scales lack liquidity, which is the true root of stablecoin adoption. This is where yield-enhancing protocols play a key role.

Revenue-generating DeFi protocols free up idle capital and redirect it to productive use. Rather than leaving liquidity dormant, it can be deployed in automated market makers, lending pools, and cross-chain payment layers. This creates deeper markets, tighter spreads, and more reliable execution. These are all essential elements to enable large-scale payments.

This is even more important in cross-border situations. Yield-enhancing liquidity pools reduce the cost of moving value between currencies and jurisdictions. They replace fragmented correspondent banking networks with on-chain systems that are transparent, available 24/7, and have economic incentives to maintain liquidity. When liquidity is plentiful and incentives are aligned, users don’t have to worry about whether payments will go through or whether value will be available on the other side.

what happens next

After all, stablecoins didn’t emerge to replace banks overnight, nor do banks need to do so to succeed. They have a more fundamental role: to introduce a faster, programmable, and globally accessible financial layer. Stablecoins are meant to do what money is supposed to do: maintain value, move instantly when needed, and earn the trust of those who use it.

On all three fronts, they are rapidly evolving and often outperforming incumbents. The digital dollar will accelerate this change, with protocols that improve yields increasing scalability and consumer adoption making it a reality. The extent to which we can do this will depend on what we build next.

Michael Egorov

Michael Egorov He is a physicist, entrepreneur, cryptocurrency maximalist, and the person who was at the origin of DeFi’s creation. He is the founder of Curve Finance, a decentralized exchange designed for efficient, low-slippage trading of stablecoins. Since founding Curve Finance in 2020, Michael has developed all solutions and products independently. His extensive scientific experience in physics, software engineering, and cryptography will aid in the creation of the product. Currently, Curve Finance is one of the top three DeFi exchanges in terms of total amount of funds locked in smart contracts.

CBDC money redefined Stablecoins
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