For greater than a decade, regulators and central banks have checked out Bitcoin with fascination and dread. To them, it isn’t simply “an unbacked digital asset” — it’s a forex and not using a king, a fee rail and not using a gatekeeper, and a monetary system resistant to central banks’ management.
Some governments have leaned in (El Salvador adopting it as authorized tender, the U.S. opening the door through Bitcoin ETFs), whereas others have doubled down on alternate options like CBDCs and controlled stablecoins. However Bitcoin, borderless and leaderless, stays the elephant within the room.
In my newest Substack, I break down 4 large the explanation why governments are so anxious about it: 1. Financial sovereignty — central banks concern shedding management of rates of interest, credit score, and the cash provide. 2. Actuality examine — in the present day Bitcoin is handled as an funding, not a real fee rail, which retains regulators skeptical. 3. Nationwide safety — its resistance to censorship threatens sanctions enforcement and AML/CTF instruments. 4. Taxation — pseudonymous transactions may undermine governments’ capability to fund themselves.
I additionally discover the longer-term query: historical past exhibits cash improvements are all the time feared, regulated, then reluctantly included. Is Bitcoin at that “storm earlier than incorporation” stage?
If this sounds attention-grabbing, I’d love so that you can test it out right here: [https://open.substack.com/pub/fintechinfocus/p/the-currency-without-a-king?r=62ekr9&utm_medium=ios]
Curious to listen to what this sub thinks: Are governments’ fears justified, or are they simply delaying the inevitable?
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