Central banks effect on crypto-currency

Abstract

This project aims to research cryptocurrency's impact on central banks' decisions and market effects. Central banks and governments are significant regulators and money circulation controllers, influencing inflation rates, exchange rates, and interest rates with one another. Money is a traditional and highly valued item used to create currency. It has faced many problems, crashes, and impacts, but none as severe as those associated with cryptocurrency. Bitcoin and other highly valued cryptocurrencies have impacted the US dollar over the last two years. When a new financial instrument is introduced to the market, its value and demand affect traditional financial instruments such as forex, stock exchange, bonds, and futures or options. I sincerely desire to discover the relationship between cryptocurrency and central banks and their currencies. Initially, cryptocurrency was introduced as a decentralized currency based on blockchain technology.