State CBDCs will certainly compete with private and other stablecoins that existed before they were introduced. However, their mode of operation is slightly different, so they will have to exist in parallel. Private stablecoins can only disappear when governments prohibit the use of their currency as collateral for these stablecoins. Without such a ban, or a ban on the stablecoins themselves, they can move at the same time, complementing each other with their different capabilities.