Digital currencies, including cryptocurrencies like Bitcoin and Ethereum, have emerged as transfo... more Digital currencies, including cryptocurrencies like Bitcoin and Ethereum, have emerged as transformative forces in the global financial system. Central banks have also entered the arena, with nations such as China pioneering Central Bank Digital Currencies (CBDCs). As of 2023, more than 90 central banks globally were researching or piloting CBDCs, signaling a shift towards digital monetary systems. However, the rapid rise of cryptocurrencies has raised questions about financial stability, regulatory frameworks, and their potential to displace traditional fiat currencies like the U.S. dollar, which remains the world's primary reserve currency. Economic and Regulatory Implications: Cryptocurrencies have gained traction due to their decentralized nature, promising lower transaction costs and financial inclusion. Yet, they face significant challenges, including volatility, environmental concerns, and susceptibility to misuse in illicit activities. Governments worldwide are grappling with the dual challenge of regulating this nascent sector while fostering innovation. Meanwhile, major corporations have started accepting cryptocurrencies, reflecting their growing integration into mainstream financial systems. However, critics argue that the volatility and speculative nature of cryptocurrencies make them unreliable as a stable medium of exchange.
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Papers by Rhiley Toscano