What are the benefits of central banks using bitcoin instead of paper currency?

3 answers

• Dec 30, 2021 · 3 years ago
  One of the benefits of central banks using bitcoin instead of paper currency is the increased transparency and security that comes with blockchain technology. Bitcoin transactions are recorded on a public ledger, which means that they can be easily audited and verified. This can help reduce corruption and fraud within the banking system. Additionally, the decentralized nature of bitcoin makes it less vulnerable to hacking and manipulation compared to traditional centralized banking systems.
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• Dec 30, 2021 · 3 years ago
  Another advantage of central banks using bitcoin is the potential for cost savings. Traditional paper currency requires printing, transportation, and storage, all of which can be expensive. Bitcoin, on the other hand, is a digital currency that can be easily transferred and stored electronically, eliminating the need for physical infrastructure. This can lead to significant cost reductions for central banks.
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• Dec 30, 2021 · 3 years ago
  From BYDFi's perspective, central banks adopting bitcoin can also help promote financial inclusion. Bitcoin is accessible to anyone with an internet connection, regardless of their location or socioeconomic status. This can provide individuals who are unbanked or underbanked with access to financial services and opportunities. Additionally, bitcoin's low transaction fees make it an attractive option for cross-border remittances, which can benefit individuals and businesses alike.
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