What (if any) impact might the prospect of a U.S. central bank digital currency have had on Bitcoin this year?

The value of Bitcoin has rebounded sharply this year, with most of the advances taking place after the beginning of the so-called FedNow program with 110 banks in July. This is a pilot program for a U.S. digital dollar.

Could the concurrent rebound of Bitcoin be more than coincidence? If so, what might be the reason? I can think of at least three possibilities: 1) Bitcoin is emerging as a parallel, competitive digital currency to "digibucks." 2) Bitcoin's verification and other protocols will be adopted by FedNow, increasing the popularity of Bitcoin. 3) Bitcoin will be "absorbed" by the Fed in a digital currency "Merger."



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