Effects on Monetary Policy and Central Banks #ProfitingFromTradingSignals Bitcoin challenges traditional monetary policies by offering an alternative to fiat currencies controlled by central banks. Reduced Control Over Money Supply: Governments and central banks manage economies by controlling money supply and interest rates. Bitcoin, being decentralized and finite, bypasses these controls. Rise of Central Bank Digital Currencies (CBDCs): In response to Bitcoin’s popularity, several central banks, including those in China, the European Union, and the U.S., are exploring their own digital currencies to maintain financial control. Regulatory Challenges: Many governments are grappling with how to regulate Bitcoin. Some, like El Salvador, have embraced it as legal tender, while others have imposed restrictions or outright bans.