Part 4/9:
Threat to Central Bank Authority: Cryptos could diminish the power of central banks (like the Fed) to control money supply and monetary policy.
Cross-Border Transactions: Lower transaction costs associated with crypto could incentivize capital flight and reduce the effectiveness of monetary policies.
Decentralization Challenges: Since cryptocurrencies are inherently decentralized and not controlled by any single entity, they pose a threat to monetary stability and sovereignty.
Furthermore, the risks of unregulated crypto markets include the potential for economic instability and exposure to Ponzi schemes or fraudulent schemes, such as the FTX collapse that shook confidence in the sector.