Central Banking in the Age of Cryptocurrencies

Abstract

This thesis shows the problems that the decentralized nature of cryptocurrencies poses to central banks' power and their reactions to this "problem". In this thesis, the popularity of cryptocurrencies is shown, and the power that they have to influence monetary policy, financial stability, and financial regulations. However, central banks are responding by introducing their own Central Bank Digital Currencies (CBDCs), regulatory frameworks, and cross-border collaboration. A case study on the fall of FTX and the effects it has had on the regulations of cryptocurrency has also been discussed and mentioned in the thesis.