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The Implications of Bitcoin Adoption for Central Banks April 16, 2021 Bitcoin’s adoption is undoubtedly increasing across the world. And the continued acceptance and usage of this digital currency could have significant and profound effects on the traditional financial systems. More importantly, central banks’ practices will undoubtedly change as more people turn to use this cryptocurrency. Some people have even argued that fiat currency could eventually become obsolete. And this implies that Bitcoin might replace the euro, the yen, the dollar, and other fiat currencies in the future. Perhaps, this implication should prompt central banks to issue their digital currencies. But, what risks and opportunities do Bitcoin and other cryptocurrencies present?

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