News from 2018-10-10 / KfW Research

The value of a bitcoin: more competition in payments

The supporters of cryptocurrencies celebrate them as a private alternative to public money in the digital age. But if they are limited in quantity – such as Bitcoins, for example – they cannot perform the functions of money. Nonetheless, even central banks are considering the introduction of virtual currencies of their own. But at the moment it appears that issuing electronic central bank money is unlikely to provide additional net benefits. Still, cryptocurrencies stimulate competition in international payments and contribute to improving them. Moreover, the blockchain technology behind Bitcoins is likely to become much more important in the future.

The value of a bitcoin: more competition in payments

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