Hey,
I am right now a little bit researching about financial stability and monetary policy.
It seems that monetary policy through a central bank is pretty important for the global financial stability.
For example if there is a financial crisis, central banks try activly to stabilize the financial system.
If Bitcoin would replace fiat money and such a crisis would occur, wouldnt this lead to long term financial instability?
Central Bank is the head of anything related to finance of the country financial system and if anything happens like financial crisis the only thing that will happen is the central bank introduced a momentary policy that will stabilize the financial system and help every thing to normality. Bitcoin also can stabilize financial system during economic crisis through inflationary control as most times what create inflation is the cost of production of fiat money.