Bitcoin increases pressure on central banks
The cryptocurrency, as its value grows, in turn increases the demands for financial institutions in each country
As cryptocurrencies like bitcoin increase in value, hand in hand with increasing use, the pressure on central banks grows even more.
If the most popular digital asset in the world is taken into consideration, it is observed how it has reached $ 50,000 per unit hand in hand with the growth of its popularity in the world of investors.
The world’s major central banks set out last October how a digital currency could work, although progress has been slow. In fact, the statement from last week’s G7 finance ministers meeting did not mention anything about this new technology.
It should be noted that in recent times, access to money from central banks has been limited for financial institutions, so the idea of bringing it to the general public could generate economic and financial repercussions.
Given this situation and all the aforementioned factors, different central banks have opted for the creation and implementation of their own digital assets to go hand in hand with the evolution of the digital economy.
This is how we can see, for example, the People’s Bank of China that has already announced the issuance of its own cbdc, as well as the Riksbank of Sweden and the Bank of Canada.
The European Central Bank (ECB) and the Bank of England (BoE) have started consultations, although ECB President Christine Lagarde said last month that any digital euro would take years. The Bank of Japan (BoJ) and the United States Federal Reserve (Fed) have taken a back seat.
K. Tovar
Source: Investing
