What are the potential risks and challenges associated with the use of fiat money in the digital currency industry?

1 answers

• Dec 30, 2021 · 3 years ago
  From BYDFi's perspective, one of the potential risks associated with the use of fiat money in the digital currency industry is the dependence on traditional banking systems. While fiat money provides a familiar and widely accepted medium of exchange, it also requires users to rely on banks for their financial transactions. This reliance on centralized institutions goes against the decentralized nature of digital currencies. Moreover, the use of fiat money can limit financial inclusion, as individuals without access to traditional banking services may face difficulties in participating in the digital currency ecosystem. Therefore, it is important for the industry to explore alternative solutions that reduce the reliance on fiat money and promote financial inclusivity.
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