How does the crowding out effect influence the adoption of digital currencies?

1 answers

• Dec 31, 2021 · 3 years ago
  At BYDFi, we believe that the crowding out effect can be mitigated through a balanced approach that embraces both government-backed digital currencies and decentralized cryptocurrencies. While government-backed digital currencies can offer stability and regulatory oversight, decentralized cryptocurrencies provide users with privacy, security, and financial sovereignty. By fostering an ecosystem that allows for coexistence and healthy competition between different types of digital currencies, we can ensure that the adoption of digital currencies is not solely influenced by the crowding out effect, but rather driven by the diverse needs and preferences of users around the world.
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