Will CBDCs Kill the Use Case for Stablecoin Payments in Travel?

More countries are piloting CBDCs, including China, the UAE, and Saudi Arabia. This momentum raises a key question for travel fintechs: if CBDCs succeed, will stablecoins lose their relevance in flight, hotel, and experience payments?

The answer is not straightforward. While CBDCs have advantages in legal status and compliance, stablecoins still hold a strategic edge in flexibility and cross-border accessibility.

CBDCs have several strengths for travel transactions:

• Regulatory clarity: CBDCs are legal tender, removing uncertainty about their status.

• Built-in compliance: CBDCs often include embedded KYC and AML controls.

• Stable redemption value: They do not float on open markets, reducing volatility.

• Domestic acceptance: Merchants and users within a country may trust CBDCs more quickly than private tokens.

For example, the UAE completed a major CBDC pilot under Project mBridge, demonstrating cross-border settlement efficiency.

Where Stablecoins Still Hold an Edge

Stablecoins continue to outperform CBDCs in several areas:

• Multi-chain issuance: Stablecoins such as USDT and USDC operate across Ethereum, Solana, and Tron. Travel platforms that only support one chain risk losing users who hold assets elsewhere.

• Interoperability: Stablecoins connect easily with wallets, DeFi, and payment bridges.

• Cross-border accessibility: Many regions do not yet have live CBDCs, keeping stablecoins as the only viable option for global crypto payments.

The 2025 BIS “Advancing in Tandem” survey found that more than 60 percent of central banks are exploring frameworks that allow stablecoins and CBDCs to coexist.

Pilot Use Cases and Global Experiments

• China’s digital yuan: The e-CNY has been tested for cross-border settlement under Project mBridge, expanding China’s payment infrastructure. 

• Saudi Arabia joins mBridge: Saudi Arabia’s participation in the BIS-led project highlights regional interest in CBDC interoperability.

• BIS report on CBDC access and interoperability: The BIS details how CBDCs could operate across networks, potentially linking to stablecoins.

These projects suggest that CBDCs and stablecoins may evolve in parallel rather than compete directly.

These projects suggest that CBDCs and stablecoins may evolve in parallel rather than compete directly.

Implications for Travel Payment Platforms

For travel providers such as airlines, OTAs, and booking apps:

• Supporting both CBDCs and stablecoins can help reach users across jurisdictions.

• Payment UX must hide technical details and focus on user simplicity.

• Settlement systems will need to bridge CBDC infrastructure with traditional banks and stablecoin networks.

Platforms already processing stablecoin payments are positioned to adapt faster once CBDCs become accessible for cross-border transactions.

Risks and Barriers

• Privacy concerns: CBDCs may allow transaction-level oversight, which could discourage some travelers.

• Fragmentation: Each country is developing its own CBDC framework, creating interoperability challenges.

• Technical gaps: Bridging CBDCs with private tokens remains complex.

• Regulatory uncertainty: Stablecoin issuers must meet new transparency and reserve requirements.

The IMF notes in Cross-Border Payments with Retail CBDCs that coordination across central banks is crucial for adoption to scale smoothly.

Outlook and Strategy

CBDCs are unlikely to eliminate stablecoins in the near term. Instead, both systems will probably coexist, serving different layers of the global payment ecosystem.

For travel fintechs already accepting digital assets, such as Fly Fairly, the arrival of CBDCs represents an opportunity rather than a threat. Supporting both stablecoin and CBDC payments can enhance accessibility and trust among international travelers.