Nigeria had banned cryptocurrencies earlier this year (to little effect). It has now introduced its CBDC, the eNaira. Currency and government stability are the likely reasons. Other countries will follow.
There are structural issues in both the crypto and regulated worlds. But how deep and how frequent are they? Here is a review of Cryptos’ pros and cons.
A few interesting comments from Fed officials about the likelihood of a US CBDC (a Central Bank Digital Currency would be fungible into our daily US dollar).
Not all central bankers and diplomats have a good opinion of cryptocurrencies.
They are assessing their costs & benefits through articles in prime newspapers.
One diplomat/economist just called for their outright ban.
Central Bank Digital Currencies are very different from cryptocurrencies. Cryptos will be used by unsavory countries. CBDCs will be used by democracies and bad actors alike.
Here are examples of both types, as well as the challenges the Federal Reserve faces in creating a digital dollar.