In a thought-provoking panel discussion at Money20/20, three industry experts delved into the intriguing world of digital currencies, exploring the possibilities of cooperation and competition between central bank digital currencies (CBDCs) and stablecoins. The discussion shed light on the remarkable growth of stablecoins, the cautious optimism surrounding CBDCs, and the regulatory challenges that lie ahead.

Ran Goldi highlighted the impressive adoption of stablecoins, such as USDC and USDT, with 30 million users worldwide and monthly transactions reaching a staggering $3.3 trillion. He emphasized their practical applications in cross-border payments, payouts, and merchant acceptance. Visa corroborated this growth, noting that stablecoins have seen huge traction recently.

Alisa DiCaprio, however, presented a contrasting view on CBDCs, pointing out that despite significant interest, adoption remains low, with privacy concerns and implementation complexities being major hurdles. She noted that emerging economies are leading the way in CBDC development, citing their simpler banking systems.

Siân Jones discussed regulatory perspectives, describing regulators' cautious optimism regarding CBDCs' potential benefits, such as improved payment efficiency and financial inclusion. However, she also highlighted the inherent challenges and the need to mitigate risks.

The discussion also touched on geopolitical dynamics, with Goldi noting the impact of European regulations on stablecoin issuers. He predicted a new wave of stablecoin competition, dubbing it the "second stablecoin war."

Despite the distinct advantages and obstacles associated with stablecoins and CBDCs, the panelists agreed that continuous advancements are transforming conventional financial systems. Goldi encouraged businesses to take advantage of this "war" and move to better rails.

In conclusion, the debate highlighted the exciting possibilities and challenges in the digital currency space. As stablecoins and CBDCs continue to evolve, it is clear that the future of payments and financial inclusion hangs in the balance.