CBDCs could threaten altcoins, especially payment-based ones like XRP.

From Yahoo Finance: 2025-06-17 21:05:00

Central bank digital currencies (CBDCs) could make many altcoins obsolete. Cryptocurrencies with unique capabilities will survive. Coins focusing on payment rails could be wiped out. The Bahamas’ Sand Dollar CBDC offers instant transfers with no fees, posing a threat to altcoins. The U.S. is evaluating CBDC impacts despite a ban. CBDCs could challenge payment-focused altcoins like XRP. Ethereum and Solana offer utility CBDCs can’t replicate. Investors should assess altcoins’ real demand before CBDCs launch to avoid market shrinkage. Tokens like XRP may be threatened, but on-chain capabilities could survive.

Investors should consider scarce on-chain capabilities that CBDCs can’t match. Altcoins without real capital backing face market shrinkage as CBDCs gain traction. Meme coins thrived in 2024, but structural competition from CBDCs poses a threat. XRP’s use as on-chain financial infrastructure for institutional investors may remain strong. Other sectors like decentralized compute or digital collectibles may survive CBDC competition.

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Source: https://www.fool.com/investing/2025/06/17/could-cbdcs-crush-altcoin-returns-investors-beware/



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