In a recent research note published by Australian investment bank Macquarie, if central banks such as the Federal Reserve System (FRB) and the European Central Bank (ECB) slow down the adoption of digital currency (CBDC), they will be pushed out of competition for cryptocurrencies such as Bitcoin. Pointed out that you can.
Macquarie said, “CBDC is lagging behind the pace of cryptocurrency popularization.” There will be.”
Macquarie said, “Now the financial authorities in the US are exerting a great deal of power over the cryptocurrency and its ecosystem,” said Macquarie. “However, as the size of cryptocurrency increases and more people use it, the network effect will occur and the regulatory effect will decrease. And the demand for fiat currency will also decrease.”
But Macquarie added that central banks are more likely to dominate the legitimate sphere of commerce if they work with private partners to quickly provide a reliable, secure and functional CBDC.
Macquarie predicted that “in this case, the demand for cryptocurrency will be limited to value storage assets and currencies used for illegal transactions.”
“The central bank of China can launch a digital currency as early as this year, but the FRB and ECB will not be able to prepare the CBDC until at least 2022,” Macquarie said. “The central banks not only build the infrastructure necessary to operate the CBDC, but decide how to operate it. He also pointed out that he is having difficulty with the problem.
Meanwhile, Macquarie said, “For the next one to two years, we expect that cryptocurrencies such as bitcoin, whose issuance volume is limited, will continue to increase in value unless a new regulation is established to curb the utility of cryptocurrency.”
Reports and press releases should be sent to [email protected].