The progressive use, by individuals and companies, of cryptocurrencies as new forms of payment, financing or contracting is disrupting governments and central banks, becoming a “threat to monetary and financial stability, and it is unlikely that central banks and governments renounce their monetary monopolies.“
A study by Detusche Bank on cryptocurrencies and their future reveals the concern that governments have about the growing popularity of crypto. Every day more politicians, central bankers, economists and authorities claim the need to establish market regulation mechanisms in order to protect investors and also to “preserve the monopoly on the control of money that public authorities enjoy today (government and central bank).”
For many spokesmen, the use of cryptocurrencies is linked to illegal activities and speculation, but their use and exchange are becoming more popular every day, to the point that El Salvador became the first country to accept Bitcoin as legal tender.
The bank’s specialists consider that bitcoin, along with other crypto assets, has crossed the threshold of widespread use and can no longer be ignored anymore as cryptocurrencies begin to seriously compete with conventional currencies and fiat currencies, regulators and legislators will take strong action.”
Many countries have crypto assets on their regular agenda during this year. Because these nations will not allow private cryptocurrencies to compete with government-backed fiat currencies and can cause damages to the monetary system.