What Even is a Central Bank and Why Should Crypto Users Care?

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Posted by Showzes
8/22/2025 1:16 pm
#1

Keep seeing "central bank" in crypto discussions but feel dumb asking - what exactly are these institutions and why do they matter for Bitcoin if crypto is supposed to be decentralized?

 
Posted by Berilioum
8/22/2025 1:50 pm
#2

Don't feel dumb - this is one of the most important connections to understand! Paybis' guide on central bank explains they're government institutions that control traditional money systems https://paybis.com/blog/glossary/central-bank/ . They matter to crypto because their policies create the very problems Bitcoin was invented to solve - inflation from money printing, exclusion from financial systems, and centralized control. When central banks make decisions about interest rates or economic stimulus, it directly affects whether people seek alternatives like cryptocurrency. The guide shows how central bank actions actually drive adoption during times of economic uncertainty.

 


 
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