The competition
Meanwhile, the governments and central banks of the world are upping their game in order to fight bitcoin.
As they know, it is quite impossible to kill bitcoin, and any attempt to ban it tends to be met with increased volumes.
No, the only way for authorities to fight bitcoin is by competing with it.
So, now we can see many governments coming out with their own initiatives to create a form of digital currency.
Central bank digital currencies (CBDCs) are something many of us who follow the space have been watching closely over the last year.
The thing is, each one of the initiatives seem to be country specific. China has one. Japan is reportedly creating one. Sweden just announced their own E-krona pilot.
One of the great advantages of bitcoin is that it's international. So, it will be interesting to see what the different countries do to make their respective CBDCs interoperable.
Interestingly enough, The Bank for International Settlements (BIS) recently released a paper emphasizing that governments could potentially address the problem of cross-border payment inefficiency by creating CBDCs that are interoperable through something called Multi-CBDC arrangements (or mCBDC arrangements).
It will be interesting to see how much the global environment for both cross-border payments and CBDCs evolves in the coming years.
Have a wonderful afternoon.
