Until CBDCs Fix Its PR Problem, Stablecoins Will Reign Supreme

For some time, Central Bank Digital Currencies (CBDCs) were positioned as the next evolution in digital banking. Backed by the security and regulatory oversight of central banks, they promised faster and cheaper payments, broader financial inclusion and even better tools for tackling money laundering.

Fast forward to 2025, and that excitement has been overshadowed by a different form of digital money — one issued not by governments, but by private companies.

Stablecoins, first emerging in 2014 with BitUSD on the BitShares blockchain, offer many of the same benefits as CBDCs. They are pegged to fiat currencies or other assets and aim for price stability. But unlike CBDCs, they are issued by private companies, not public institutions, Since their inception, stablecoins have become blockchain’s most successful product. Tether and Circle — the two dominant issuers — account for 88% of the stablecoin market, valued at $181 billion. Meanwhile, less than a dozen CBDCs have been launched globally, and most others remain in pilot phases with limited circulation.

Stablecoins have been deployed far more quickly, gaining users across both retail and institutional markets. But even setting speed aside, there appears to be limited public demand for CBDCs. Stablecoins have effectively filled the space that CBDCs once aimed to occupy.

All of this raises an obvious question: have CBDCs developed a PR problem? And if so, how did that happen — and can it be fixed?

Surveillance vs. Freedom: The Image Battle CBDCs Are Losing 

State control isn’t exactly fashionable. The UK public’s impassioned rejection of Prime Minister Kier Starmer’s proposed Digital IDs reflects a deeper mistrust of government oversight. It’s fair to assume this mistrust extends to CBDCs. Although central banks operate independently, they remain closely associated with the state, and in some cases are government-owned.

As a result, CBDCs suffer from a powerful perception problem. Many people imagine a government capable of tracking every transaction, freezing funds or programming expiry dates into money. Even if these fears are unfounded, they spread quickly because money is personal and autonomy over it is emotional.

Stablecoins present the opposite image. Their issuers have leaned heavily on crypto’s ethos of openness and empowerment, without emphasising their association with crypto’s volatility. Their marketing is slick, modern and user focused. Even when a stablecoin is highly centralised, the public narrative around it centres on choice, innovation and user control rather than state oversight. Stablecoins sound like financial freedom; CBDCs sound like financial regulation.

Private Companies Are Simply Better at Marketing 

Although marketing is only part of CBDCs’ PR issue, it’s an important one. If we consider the fact that CBDCs must adhere to strict regulation and have centralised oversight, they should naturally be viewed as safer than privately issued stablecoins, yet that perception does not exist. Stablecoins have become so widely adopted through strong marketing that they risk making CBDCs feel unnecessary before they even launch.

Private companies communicate in a way designed to resonate with users: highlighting benefits, partnerships and product improvements. Their messaging moves at the speed of the internet.

Central banks communicate cautiously through consultations, committees and policy papers. Their tone is technical and risk averse. As a result, stablecoins benefit from optimistic, aspirational narratives, while CBDCs come across as bureaucratic and defensive. One sells empowerment; the other explains infrastructure.

CBDCs Lost a Privacy Debate They Should Have Won

Despite assumptions, most CBDC proposals in democratic countries include strong privacy protections. These often involve privacy-by-default for low-value transactions, strict limits on data access and separation between the central bank and transaction processors. Many CBDC models purposely rely on intermediaries to prevent government surveillance.

Yet the public rarely hears this. Stablecoin issuers downplay the fact that their transactions occur on public blockchains, where activity is permanently traceable. Instead, they highlight speed, efficiency and accessibility.

CBDCs urgently need better communication about how user data would be protected — and why a central bank–issued digital currency may in fact offer stronger privacy guarantees than privately run alternatives.

Young People Trust Tech Corporations More Than Institutions

 Younger generations engage more with technology brands than with traditional institutions. Fintech banks like Monzo have become standard among young adults, and Gen Z’s daily life is shaped by digital platforms that manage everything from finances to food delivery.

Against this backdrop, stablecoins feel like familiar digital products built for users. CBDCs, by contrast, are framed as policies implemented by institutions. Even if central banks remain the most credible guardians of monetary stability, the narrative has shifted. Stablecoins feel user-driven; CBDCs feel institution-driven. That difference shapes adoption more than technical design.

CBDCs Need to Tell a Better Story

Technically, CBDCs are not inferior to stablecoins. In many ways, they offer stronger foundations of accountability, stability and legal protection. But perception drives adoption - and stablecoins have already won the public narrative.

If central banks want to regain ground, they must rethink how they communicate CBDCs. In an era of mistrust in government, privacy must be front and centre, alongside clear explanations of real user benefits.

Yes, CBDCs are still largely in pilot stages, while stablecoins are already widely used. But that doesn’t mean central banks cannot begin telling a more compelling story. Ultimately, the question is not whether CBDCs can work — but whether they can win back the public imagination.

If your DeFi or Web3 project wants to navigate this landscape with clarity and impact, I help teams develop cost-effective and results-driven communication strategies that combine PR, social media and SEO. Get in touch if you want to elevate your message, reach the right audiences and build sustainable growth in a rapidly evolving market.

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