Government stablecoins are CBDCs (central bank digital currency). A digital form of national currency issued not by the next startup genius, but by a fully official central bank.
Let's be honest: this is not cryptocurrency. It's just money, but on the blockchain, if we call a centralized database "blockchain."
That is:
no decentralization;
no freedom;
full state control (who thought they would give it up?).
Why do states need such a circus?
Noble reasons — transparency, innovation, fast transactions.
Real reasons — total control, surveillance, and the ability to 'turn off' funds if someone is not very obedient.
Yes, it sounds romantic.
Examples of government stablecoins (and what's wrong with them)
1. Central Bank of The Bahamas — Sand Dollar
Pioneers of digital currency among states.
The idea is good: accessibility of financial services on the islands.
Reality: technologically not bad, but there was no global revolution — the world somehow didn't rush to buy 'sand dollars' en masse.
2. Central Bank of Nigeria — eNaira
Ambition: 'oh, we will be the first in Africa and outpace everyone.'
Problem: people didn't appreciate it much. Really, why a digital version of the national currency that is already not very stable?
3. People's Bank of China — digital yuan (e-CNY)
The largest experiment. China is moving towards full control over financial flows, and the digital yuan is just a gift for the state.
For users — a little less freedom, a little more oversight. The classic genre.
KGST — Kyrgyz 'national stablecoin'
this is a stable digital coin pegged 1:1 to the national currency — the Kyrgyz som (KGS). In other words, this is not a trader's fantasy, but a project backed by the state of Kyrgyzstan — albeit in very close collaboration with major players in the crypto industry.
So are they needed in the world?
It depends. If the dream is a totally controlled digital wallet, then yes, this is the ideal option.
If you want financial freedom — well... government stablecoins will disappoint.
But as a tool for modernizing the banking system — they are already changing the game: cheaper transactions, programmable money, integration with government services.
The truth is, the freedom there is like anonymity on Instagram.
Conclusion
Government stablecoins are a kind of compromise between crypto and bureaucracy.
Governments want to be trendy, but at the same time, they don't want to lose control.
So it turned out not to be a revolution, but a digital version of the same old world. Convenient? Maybe. Innovative? Partially.
Freedom? Yeah, right.
