What are the arguments against CBDs endorsing crypto?

3 answers

• Mar 18, 2022 · 3 years ago
  One argument against CBDs endorsing cryptocurrencies is the volatility and uncertainty of the crypto market. The value of cryptocurrencies can fluctuate wildly, which can be risky for businesses and investors. Additionally, the lack of regulation and oversight in the crypto industry raises concerns about fraud and illegal activities. CBDs may be hesitant to associate themselves with an industry that is still relatively new and unregulated.
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• Mar 18, 2022 · 3 years ago
  Another argument against CBDs endorsing crypto is the potential for negative public perception. Cryptocurrencies have been associated with illegal activities and scams in the past, which can tarnish the reputation of CBDs. Some people may view CBDs endorsing crypto as supporting or condoning these negative aspects of the industry. CBDs may want to maintain a positive image and avoid any association with potentially controversial or risky investments.
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• Mar 18, 2022 · 3 years ago
  From BYDFi's perspective, CBDs may not want to endorse cryptocurrencies due to the competition it poses to traditional financial institutions. Cryptocurrencies have the potential to disrupt the banking and financial services industry, which may be seen as a threat by CBDs that have established relationships with traditional banks. CBDs may be concerned about the impact of endorsing cryptocurrencies on their existing partnerships and the stability of the financial system.
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