Bitcoin Potential For Monetary Policy Sparks Growing Interest Among Central Banks

Name	Symbol	Market	Market Cap ($)	Algorithm
Maker	MKRUSD	Crypto	1,458,761,532	Not Mineable

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Symbol

Market

Market Cap ($)

Algorithm

Maker

MKRUSD

Crypto

1,458,761,532

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	174.43	11.70%	1,665.12	1,666.01	1,667.14

Price Change

Price Change %

Current Price

Bid Price

Offer

174.43

11.70%

1,665.12

1,666.01

1,667.14

High Price	Low Price	Open Price	Prev. Close	52 Week Range
1,667.44	1,468.15	1,488.14	1,490.69	1,012.23 - 4,075.00

High Price

Low Price

Open Price

Prev. Close

52 Week Range

1,667.44

1,468.15

1,488.14

1,490.69

1,012.23 - 4,075.00

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	22:28:14	0.300000	1,665.12	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

22:28:14

0.300000

1,665.12

USD

Price x Volume	Volume	Base Symbol	Related Pairs
4,248,531.81	2,696.96	MKR	MKREUR	MKRGBP	MKRBTC

Price x Volume

Volume

Base Symbol

Related Pairs

4,248,531.81

2,696.96

Bitcoin Potential For Monetary Policy Sparks Growing Interest Among Central Banks

29/10/2024 1:30am

NEWSBTC

Bitcoin, the world’s top cryptocurrency, is designed to act as a money or payment option outside anyone’s control. Using the crypto, which is decentralized and peer-to-peer, removes the involvement of third parties, like central banks. This Bitcoin promise has redefined the financial landscape, helped the unbanked, and empowered those who want independence. However, the ecosystem has its share of critics, including central banks. Related Reading: Floki Inu Warning: Analyst Says ‘Prepare For The Crash’ – Details Central banks’ role shrinks as the Bitcoin ecosystem grows and its use cases expand. This prevailing belief is validated by a growing amount of research from financial institutions and central banks that assess Bitcoin’s disruptive nature. The ever-increasing narrative focuses on Bitcoin’s role in promoting inequality and its potential to disrupt central banks’ policies. The Role Of Bitcoin In Distributing Wealth One subject of central banks’ studies highlights Bitcoin’s role in wealth distribution. To help us understand Bitcoin’s role, we look at two papers published by the European Central Bank. The first paper, published after the FTX fiasco in 2022, is titled “Bitcoin’s Last Stand,” which sees the top crypto as a failed monetary project nearing its end. But in 2024, when Bitcoin hit an all-time high, the same researchers filed another study, painting Bitcoin positively. The paper argued that crypto can impact wealth distribution, but only the early holders get richer. Since Bitcoin or crypto use doesn’t produce a product or service, the increased wealth of early adopters comes from the reduced consumption of all other members of society. Does BTC Disrupt Monetary Policies? Other finance-related researches look at Bitcoin’s impact on monetary policies. For example, the Minneapolis Federal Reserve argues that when people can hold and use Bitcoin, it is difficult for the state to run budget deficits regularly. Traditionally, the government can just offer bonds in case there’s a deficit in revenue collection. But governments may only spend what they usually collect if there’s Bitcoin. The study suggests two options: one, to ban Bitcoin’s adoption, and two, to tax this asset. In addition to the Minneapolis paper, an IMF policy paper in 2023 highlighted Bitcoin’s effect on monetary policy. The paper argues that Bitcoin impacts a state’s policy, and emerging markets are most vulnerable. As a solution, the researchers recommend strengthening their monetary policies first before banning Bitcoin. Related Reading: MicroStrategy Stock Hits All-Time High As Bitcoin Blazes Past $67,000 Central Banks, Financial Institutions Now Take Bitcoin Seriously Recent studies and research from central banks indicate that Bitcoin is redefining finance. While these papers don’t mirror the ideas and thinking of policymakers at these institutions, they give us insight into how the industry sees Bitcoin. Some recent policies, including the IMF 2022 Argentina bailout recommendations, include a few anti-cryptocurrency provisions. Bitcoin’s continued popularity is now becoming an obstacle for many central banks in their efforts to create monetary policies. One of the main aims of Bitcoin’s supporters is to offer the public an alternative financing landscape free from the direction, if not, clutches of banks. Featured image from Dall-E, chart from TradingView

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