European Central Bank working paper says Bitcoin and cryptocurrencies are a store of value for many around the world

A working document from the European Central Bank (ECB) said bitcoin (btc) and other cryptocurrencies are used as a store of value for many people around the world.

The document comes a year after the ECB itself criticized bitcoin in a blog postsaying he was on “the road to irrelevance.”

“Although prices have been very volatile, these cryptocurrencies can represent a better store of value with respect to the national currency of countries where inflation is high and the exchange rate tends to depreciate,” said the recently published article. worksheet.

Because bitcoin could have been used as a store of value in countries that experienced a loss in the purchasing power of their national currencies.”“Macroeconomic instability can potentially stimulate greater use of cryptoassets,” he added.<img decoding="async" style="font-size: calc(1.325rem + 0.9vw);background-color: var(–bs-body-bg);color: var(–bs-body-color);font-family: var(–bs-body-font-family);text-align: var(–bs-body-text-align)" alt="ECB issues stern warning on Big tech cryptocurrency projects – EURACTIV.com” src=”https://technicalterrence.com/wp-content/uploads/2023/12/European-Central-Bank-working-paper-says-Bitcoin-and-cryptocurrencies-are.jpg”/><img decoding="async" style="font-size: calc(1.325rem + 0.9vw);background-color: var(–bs-body-bg);color: var(–bs-body-color);font-family: var(–bs-body-font-family);text-align: var(–bs-body-text-align)" src="https://technicalterrence.com/wp-content/uploads/2023/12/European-Central-Bank-working-paper-says-Bitcoin-and-cryptocurrencies-are.jpg" alt="ECB issues stern warning on Big tech cryptocurrency projects – EURACTIV.com”/>

Factors Driving bitcoin Adoption in Emerging Economies

In emerging and developing economies (EMDE), the document said that cryptocurrencies The ability to protect against instability in national currencies is an important catalyst for its adoption.

Another factor driving adoption in developing countries is the fact that digital assets provide EMED residents with an alternative payment method for cross-border transactions. By using this new payment option, residents can “bypass capital controls” and “reduce the cost of receiving remittances from abroad,” the newspaper stated.

A flaw that could slow bitcoin adoption

btc A high level of volatility may discourage people from using it as a payment method, the ECB document states, adding that stablecoins may become more prominent transactional media in the future.

Related Posts:

New crypto mining platform: bitcoin Minetrix

<img decoding="async" class="inContentProviderSingle–img mb-3" alt="bitcoin Minetrix” width=”125″ height=”60″ src=”https://technicalterrence.com/wp-content/uploads/2023/12/European-Central-Bank-working-paper-says-Bitcoin-and-cryptocurrencies-are”https://technicalterrence.com/crypto/bitcoin/”>bitcoin-minetrix.svg”/>bitcoin-minetrix.svg” alt=”bitcoin Minetrix” width=”125″ height=”60″/>

• Audited by Coinsult
• Secure and decentralized cloud mining
• Earn free bitcoin daily
• Native Token on Pre-Sale Now – BTCMTX
• Staking Rewards: Over 100% APY

<img decoding="async" class="inContentProviderSingle–img float-right" alt="bitcoin Minetrix” width=”125″ height=”60″ src=”https://technicalterrence.com/wp-content/uploads/2023/12/European-Central-Bank-working-paper-says-Bitcoin-and-cryptocurrencies-are”https://technicalterrence.com/crypto/bitcoin/”>bitcoin-minetrix.svg”/>bitcoin-minetrix.svg” alt=”bitcoin Minetrix” width=”125″ height=”60″/>