Bitcoin is threatening to destroy the ability of governments to manipulate their own currencies, as the cryptocurrency creates a new way to evade official controls and move money across borders. The loophole could have significant implications across the world, upending currency wars, hampering efforts to manage crises and challenging traditional ideas of economic development – all of which frequently include restrictions on taking money abroad.
As a result, the entire practice of artificially moving exchange rates up or down to suit politicians or central bankers could be rendered untenable, according to research presented by economist Gina Pieters to the Royal Economic Society. We rely on advertising to help fund our award-winning journalism.
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