Central Bank Blockchain Digital Currency (CBDC) and Cryptocurrency Reserves are set to be used by every country. The US Federal Reserve provides a base for a stable currency that has eluded other countries. Governments have never had a monopoly on the provision of money. Private systems – unbacked by the government or deposit insurance – regularly sprang up in the past, often to service discrete communities. In the US in the 1800s, for example, railroad and canal companies paid workers in paper “scrip,” redeemable for goods at sponsored stores. Eventually, the private currency failed.
Bitcoin is a private currency that has gained favor worldwide, but it has fatal flaws related to tax evasion and money laundering. Bitcoin has been very volatile in value. The volatility is likely to persist as there is no Fed to regulate the swings in value. With vast swings in value the bitcoin becomes more of an investment than a mechanism of exchange - one day a car is worth $3000 another day it may be worth 30,000.
Disadvantages of Bitcoin
Volatility
Limit of 21 million bitcoins that could ever exist
No Government Regulations. ...
Irreversible
Limited Use
Bitcoin is not totally anonymous. Another issue includes the damage to the environment from bitcoin mining. It simply does not work well as a currency.
CBDC from the US government would provide a stable currency.