The use of cryptocurrency is has increase over the years as many people now see crypto as an alternative to the fiat. My question is if the government legalize cryptocurrencies are means of payment, what will be the implications on the global economy?
The basic effect that will be very visible when the government legalizes cryptocurrency as any means of payment in the country is the lack of bank customers who save money in banks because they can already save some money in cryptocurrency in their respective wallets. So that the Bank can no longer play large amounts of money because it has experienced a shortage of deposits from the customer. Another thing that can happen is that it is difficult to develop the value of existing global currencies such as USD and also others when everyone is already using cryptocurrency for everything.
but the central government will not let cryptocurrencies rule everything. Currently, cryptocurrencies are subject to various regulations from each country's government and even impose income taxes on cryptocurrency users. so in real it will not happen completely, crypto is still under the shadow of the government and will not be able to escape. When cryptocurrencies dominate all sectors, they also cannot regulate the global economy, and the risks posed by cryptocurrencies will also be dangerous for those who do not understand and do not understand how to use cryptocurrencies.