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?
The fact still remains that bitcoin can never replace fiat money reason being that bitcoin is not coming from the government and the government don't have total control over bitcoin even if bitcoin is centralized today the technology behind it, will make it impossible for the government to have total control over bitcoin and at that the government can not take the risk of replacing what their have control over with what their can't control. The highest the government can do is to allow bitcoin to be use as a secondary currency.