European Central Bank Working Paper Says Bitcoin, Cryptocurrencies Are A Store Of Value For Many Across The World
A European Central Bank (ECB) working paper said Bitcoin (BTC) and other crypto currencies are being used as a store of value for many people globally. The paper comes a year after the ECB itself dissed Bitcoin in a blog post , saying it was on ”the road to irrelevance.” “Even though prices have been very volatile, these crypto currencies may represent a better store of value with respect to the domestic currency of countries where inflation is high and the exchange rate tends to depreciate,“ said the recently published working paper . Because Bitcoin might have been used as a store of value in countries that experienced a loss in the purchasing power of their domestic currencies , “ macroeconomic instability may potentially spur greater crypto asset usage,” it added. Factors Driving the Adoption of Bitcoin in Emerging Economies In emerging and developing economies (EMDEs), the paper said that crypto currencies ’ ability to protec...