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 A European Central Bank (ECB) working paper said Bitcoin (BTC) and other crypto<a rel="dofollow" title="currencies" href="https://thebittimes.com/tag/currencies.html">currencies</a> 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<a rel="dofollow" title="currencies" href="https://thebittimes.com/tag/currencies.html">currencies</a> 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 <a rel="dofollow" title="currencies" href="https://thebittimes.com/tag/currencies.html">currencies</a>,&nbsp; “macroeconomic instability may potentially spur greater crypto asset usage,” it added.<img decoding="async" style="font-size: calc(1.325rem + 0.9vw);background-color: var(--bs-body-bg);color: var(--bs-body-color);font-family: var(--bs-body-font-family);text-align: var(--bs-body-text-align)" src="data:image/svg+xml,%3Csvg%20xmlns='//www.w3.org/2000/svg'%20viewBox='0%200%200%200'%3E%3C/svg%3E" alt="ECB issues stark warning on Big Tech cryptocurrency projects – EURACTIV.com" data-lazy-src="https://cdn.thebittimes.com/images/2023/12/07/311e7bcffd411880addd9b62b282562e.webp">
 <noscript>
 <img decoding="async" style="font-size: calc(1.325rem + 0.9vw);background-color: var(--bs-body-bg);color: var(--bs-body-color);font-family: var(--bs-body-font-family);text-align: var(--bs-body-text-align)" src="https://cdn.thebittimes.com/images/2023/12/07/311e7bcffd411880addd9b62b282562e.webp" alt="ECB issues stark warning on Big Tech cryptocurrency projects – EURACTIV.com">
 </noscript> 
 <h2 id="span-style-font-weight-400-factors-driving-the-adoption-of-bitcoin-in-emerging-economies-span">Factors Driving the Adoption of Bitcoin in Emerging Economies</h2> 
 In emerging and developing economies (EMDEs), the paper said that crypto<a rel="dofollow" title="currencies" href="https://thebittimes.com/tag/currencies.html">currencies</a>’ ability to protect against unstable domestic <a rel="dofollow" title="currencies" href="https://thebittimes.com/tag/currencies.html">currencies</a> is a major catalyst for adoption. 
 Another factor driving adoption in developing countries is the fact that digital assets provide EMDE residents with an alternative payment method for <a rel="dofollow" title="cross" href="https://thebittimes.com/tag/cross.html">cross</a> border transactions. By utilizing this new payment option, residents can “circumvent capital controls” and “lower the cost of receiving remittances from abroad,” the paper said. 
 <h2 id="span-style-font-weight-400-a-flaw-that-could-curb-bitcoin-adoption-span">A Flaw That Could Curb Bitcoin Adoption</h2> 
 BTC’s high level of volatility may discourage people from using it as a payment method, the ECB paper said, while adding that stablecoins may become more prominent transactional mediums in the future. 
 <h3 id="span-style-font-weight-400-related-articles-span">Related Articles:</h3> 
 <ul> 
 <li style="font-weight: 400">ECB’s Elizabeth McCaul Not Satisfied with the Current MiCA Iteration – Excerpts</li> 
 <li style="font-weight: 400">ECB Issues Third Progress Report on Digital Euro, Highlights Access and Distribution Considerations</li> 
 <li style="font-weight: 400">ORDI Price Prediction: ORDI Pumps 188% In A Week After New Surge As Traders Scramble To Buy This Must-Have AI Coin</li> 
 </ul> 
 Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/european-central-bank-working-paper-says-bitcoin-cryptocurrencies-are-a-store-of-value-for-many-across-the-world-tbt72916.html">https://thebittimes.com/european-central-bank-working-paper-says-bitcoin-cryptocurrencies-are-a-store-of-value-for-many-across-the-world-tbt72916.html</a>
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European Central Bank Working Paper Says Bitcoin, Cryptocurrencies Are A Store Of Value For Many Across The World

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TheBitTimes

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