Within the CBDC backed stablecoin’s KYC (know your customer) process, only the intermediary could see the identity of a user as the transactions themselves were conducted under an alias. With privacy (or lack of) playing a huge role in both CBDCs and in stablecoins, encryption and anonymity are integral to something like this working fluently.
Stablecoins are, at present, widely accepted and used internationally while CBDCs aren’t anywhere close. China’s digital Yuan, currently the most widespread version of the technology, has had 70 million transactions since its launch. With BIS and Hong Kong working towards a 2025 target, it seems to be a long way away before they reach a comparable level.
If they do end up co-existing and this in turn provides a strong use case for CBDC-backed stablecoins then many countries and jurisdictions will most probably look to follow the blueprint laid out by the BIS & Hong Kong experiment.