Frances Coppola: A large part of the reason why cryptocurrencies are now popular with the mainstream is that the cryptocurrency ecosystem has firmly Tethered itself to the legacy system. Cryptocurrency investors mostly measure their wealth in US dollars, not in Bitcoin. Getting rich in US dollars is what they want to do. Replacing the US dollar with cryptocurrency would seriously damage their wealth. It is not what they want to do.
The original vision of the early Bitcoin adopters was that cryptocurrency would replace the legacy financial system. But instead, the cryptocurrency ecosystem is being absorbed into it. A decade from now, cryptocurrencies will be a normal part of the investment landscape. And when central banks start issuing cryptocurrencies, they’ll become a normal part of the payments infrastructure too.
But replacing the US dollar, and the banks & central banks that depend on it? No, that will still be a pipe dream.