Bitcoin from the perspective of central bank

As the first digital currency to apply blockchain technology, Bitcoin has been controversial since its birth. For the central bank, the decentralized nature of Bitcoin prevents it from being controlled by any government or financial institution, which is contrary to the central bank's currency issuance power and financial supervision responsibilities. Therefore, central banks in various countries generally adopt a cautious and wait-and-see attitude towards Bitcoin.

1. Legal regulatory risks

The anonymity and cross-border characteristics of Bitcoin make it easily used for illegal activities, such as money laundering, smuggling, etc. The central bank is worried that inadequate supervision may lead to financial disorder, so it has become more cautious towards Bitcoin. For example, the People's Bank of China has repeatedly emphasized the risks of Bitcoin transactions and strengthened its supervision of digital currencies.

2. Financial stability risks

The extreme volatility of Bitcoin prices has also become a focus of concern for central banks. The risk of bubbles in the Bitcoin market is high. Once the bubble bursts, it may trigger financial market turmoil and affect financial stability. Therefore, the central bank is more willing to focus on a stable legal currency system rather than investing in the higher-risk digital currency market.

Libra from the perspective of the central bank

Compared with Bitcoin, Libra, as a digital currency project initiated by Facebook, has attracted much attention and concern from central banks around the world. Libra is backed by global technology giants, and the potential influence of its stable currency has aroused the vigilance of central banks.

1. Threat to global payment hegemony

Libra's stablecoin is positioned as a global payment method. Once launched and widely used, it may pose a challenge to the traditional financial system. The central bank is worried that Libra may threaten the issuance rights and payment system of legal currency, so it is cautious about its development.

2. Data privacy security risks

Since Libra is dominated by technology companies, the central bank is worried about its loopholes in user data privacy protection. Data leakage may lead to loss of user privacy and even affect financial security. Therefore, the central bank has put forward strict requirements for Libra’s data management and privacy protection measures.

Summarize

In the field of digital currency, Bitcoin and Libra represent different models of decentralization and centralization respectively. The central bank is cautious about Bitcoin, mainly because of its higher risks and difficulty in supervision; while the focus on Libra stems from its potential influence and challenges to the traditional financial system. Today, as digital currencies continue to develop, the central bank needs to weigh the pros and cons and protect the balance between financial stability and user rights. In the future, with the continuous improvement of regulatory policies and technological innovation, the digital currency market will face more challenges and opportunities.

Through the analysis of Bitcoin and Libra from the perspective of central banks, we have a deeper understanding of the differences in central bank attitudes towards different digital currencies. In the field of digital currency, only by paying equal attention to supervision and innovation can the sustainable development of the industry and the stability of the financial system be achieved. May the future of digital currency be even brighter and inject new vitality and vitality into the global financial system.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.