State-Issued Stablecoin

Definition ∞ A state-issued stablecoin is a digital currency issued and backed by a government or central bank, designed to maintain a stable value relative to a specific fiat currency. Unlike private stablecoins, these are direct liabilities of the issuing state, providing the highest level of trust and regulatory assurance. They aim to combine the benefits of blockchain technology, such as efficient payments, with the stability and oversight of sovereign money. This represents a central bank digital currency in a specific form.
Context ∞ State-issued stablecoins, often referred to as Central Bank Digital Currencies (CBDCs), are a major focus of monetary policy discussions and financial news globally. Governments worldwide are exploring or piloting these digital currencies to modernize payment systems and enhance financial inclusion. The potential impact on traditional banking, privacy, and international finance remains a significant area of ongoing debate and observation.