According to a report released by the US Treasury on Wednesday, the US Treasury is concerned about the growth of the stablecoin market and believes that privately issued stablecoins should eventually be replaced by state-backed central bank digital currencies (CBDCs). "Similar to the replacement of privately issued'wildcat 'currencies by government-backed central bank currencies in the late 19th century, central bank digital currencies (CBDCs) may need to replace stablecoins as the dominant form of digital currency underpinning tokenized transactions," said the report prepared by the US Treasury's Office of Debt Management.