The total money supply (M2) in the world today is over $89 trillion and governments around the world derive most of their power from controlling the money. Cryptocurrencies like BTC and ETH introduce an alternative that is disruptive to this power that governments have over people and it's been interesting to see many central banks react to the crypto boom by introducing their own cryptocurrencies, with the People's Bank of China (PBOC) being the most recent.China is one of the most active crypto regions of the world and we'll see how the public reacts to a government-backed cryptocurrency. Initiatives like this certainly help the crypto narrative and there may be some interest in using PBOC's coin. But at the end of the day a government-backed cryptocurrency still relies on trust in the government and that trust may be lost for good.
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1confirmation Newsletter - Issue #66
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The total money supply (M2) in the world today is over $89 trillion and governments around the world derive most of their power from controlling the money. Cryptocurrencies like BTC and ETH introduce an alternative that is disruptive to this power that governments have over people and it's been interesting to see many central banks react to the crypto boom by introducing their own cryptocurrencies, with the People's Bank of China (PBOC) being the most recent.China is one of the most active crypto regions of the world and we'll see how the public reacts to a government-backed cryptocurrency. Initiatives like this certainly help the crypto narrative and there may be some interest in using PBOC's coin. But at the end of the day a government-backed cryptocurrency still relies on trust in the government and that trust may be lost for good.