Bitcoin, the king of crypto, is the reason for the growth of Central banks ‘ digital currencies. Yes, the pioneer of decentralized Finance encourages many Central banks to start research in the field of cryptocurrencies and bring an element of centralization to digital currencies
Bitcoin encourages CBDC research
Many banks around the world, both private and public, have either launched or are in the process of launching their own digital currencies. From the Chinese digital yuan to Facebook’s Libra, the rise of centralized digital currencies threatens the very ethics of decentralized Finance. Bitcoin is the main reason why many banks choose the cryptocurrency path.
Most of the digital assets of Central banks are currently in “muddy water”. Their jurisdiction, legality, and practical examples of usage and the consequences are unclear. So far, these are just attempts by Central banks to enter a decentralized sphere, although centrally. For example, Facebook’s Libra is simply trying to present itself as a global currency without borders and helps you access financial services through its platform. No wonder Facebook’s power is behind the Libra.
Now governments have the opportunity to form a new cryptocurrency in their own imagination. Of course, Central banks and governments can attract many stakeholders to support their initiative.
