Cryptocurrency

Two articles by leading economists announce the swan song for bitcoin. Both have triggered a spate of reactions. Here is what they have in common.

Bitcoin's use in payments remains limited in El Salvador, despite the government's massive marketing campaign - something no country has ever done for cash.

Bitcoin became legal tender in El Salvador in September 2021. Since then, its volatility has worsened the country's precarious financial situation.

Elsewhere on the Web is a new CashEssentials section with curated links to news and articles on cash and money. Last week, cryptocurrency ATMs were under the spotlight.

Hackers have long exploited computer vulnerabilities to rob banks remotely. These cybercrimes entail severe risks to banking systems worldwide.

The Facebook-led Diem Association is selling its assets putting an end to the social media’s controversial ambitions in digital money and payments, and a two-and-a-half-year battle with regulators and central banks across the globe.

Glitches marred the adoption of bitcoin as legal tender in El Salvador, causing anger and anxiety to customers and retailers.

El Salvador has become the first country to make bitcoin legal tender, hoping to increase financial inclusion. Critics fear it will become a vigilance tool for the government.

Marc Schwartz, CEO of the Monnaie de Paris, the French Mint, and Yannis Messaoui have recently published a study, “The great paradox or why the reign of cash is far from over”. They discuss here the history of money and explain why cash is not in the process of extinction.

Crypto incumbents defend themselves from regulation and scrutiny, befriending and hiring former (and current) regulators and politicians. However, top U.S. regulators remain skeptical of cryptocurrencies.

Some crypto exchanges are not diligent in safekeeping users’ funds. Hackers employ platforms to obscure the destination of their ransoms. North Korean hackers have targeted exchanges in Hong Kong and South Korea.

As global payments revenues exceed $2 trillion or 2.2% of the world's GDP, a growing number of stakeholders are vying to capture market share. Can cash compete in the new space race?