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With Venezuela launching their digital currency (El Petro), can it be assumed that other central banks will start producing cryptocurrency?
asked in Cryptocurrency 61 points

1 Answer

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Apart from Sweden where cash use is shrinking rapidly, there may not be a mass rush of central banks globally switching to cryptocurrencies for the following reasons: there is still not enough trust nor understanding of cryptocurrencies. Despite the erosion of confidence in government institutions, most people still prefer money backed by a central bank, and this is unlikely to change anytime soon.

In addition, mass transformation from paper currency to cryptocurrency could undermine the business models of conventional banks and their role in the financial system, making it hard for central banks—which operate largely through the banking system—to maintain financial stability.
answered 32 points
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