Since the emergence of Bitcoin in 2009 and its global spread as the largest digital currency in terms of market value and the continuous increase in the price of Bitcoin, an important question has arisen: Is it possible for Bitcoin to become the official currency of the entire world? Bitcoin is characterized as a digital currency that is not subject to the control of any central party, transcends geographical borders, and is traded around the clock without the need for an intermediary. This spread has led to widespread discussions about the possibility of adopting it as a unified currency for international exchange.

Currently, millions of people around the world use Bitcoin whether to invest or make payments. It is estimated that around 106 million people will own Bitcoin in 2026, equivalent to just 1.3% of the global population. This virtual currency has unique advantages that may support the idea of ​​a single global currency: it has a limited supply of 21 million units, making it more resistant to inflation in the long term. Its transactions are instant digital and take place online without having to go through the traditional banking system, facilitating cross-border payments and reducing remittance costs. Proponents of Bitcoin assert that its decentralized nature prevents government control, thus preventing manipulation of the money supply and reducing hyperinflation that would result from unrestrained printing of traditional currencies. Some see Bitcoin as “digital gold” that can be a store of value and a means of hedging inflation similar to traditional gold, given its scarcity in supply and its lack of correlation with counterparty risks.

Some small countries have already begun testing official Bitcoin adoption. In 2021, El Salvador became the first country to make Bitcoin a legal currency alongside the US dollar, followed by the Central African Republic in 2022. These steps aimed to promote financial inclusion and attract investments. In the case of El Salvador, President Nayib Bukele bet that Bitcoin would provide financial services to the nearly 70% of the population who do not have bank accounts, and facilitate the receipt of remittances from abroad, which constitute 20% of the country’s domestic product. El Salvador has also seen the spread of Bitcoin payments, with more than 1,166 local businesses accepting them so far. These indicators indicate that Bitcoin can be used in daily life alongside traditional currencies.

However, the experience of “dollarization with Bitcoin” in those countries faced major challenges. A study in July 2022 showed that less than a quarter of citizens in El Salvador continued to use the government’s digital wallet for Bitcoin, and that many businesses returned to traditional cash transactions. The value of what the Salvadoran Central Bank invested in Bitcoin (about $107 million) also decreased by more than 60% as its prices declined. In the Central African Republic, weak digital infrastructure (electricity and internet) has hampered the widespread use of Bitcoin. The adoption of Bitcoin sparked tension with international financial institutions. The International Monetary Fund warned that it will not provide loans to El Salvador unless it adjusts its policy on Bitcoin, given the financial risks. Indeed, El Salvador’s government responded to the pressure and stopped purchasing more Bitcoin in 2025 as part of meeting IMF conditions.

Globally, most central banks and governments still adopt a very cautious stance towards converting Bitcoin into an official currency. Central banks see Bitcoin’s extreme volatility as a key constraint. Since its launch, the digital currency has witnessed frequent sharp rises and falls (19 declines exceeding 20%, with an average value of about 44%), which makes its use as a means of pricing and exchange risky. In addition, the use of Bitcoin in daily transactions is still limited; One study estimated that less than 30% of cryptocurrency activity is currently allocated to purchasing goods and services, while the majority is used for trading and investing. These indicators reinforce the view that Bitcoin is currently closer to an investment asset than a stable currency for everyday use.

Regulatory-wise, there is not yet an international consensus on how to deal with cryptocurrencies. China has banned cryptocurrency trading completely, while the European Union has made progress in developing a bloc-level regulatory framework (“MiCA”). As for the United States, it has extended existing financial laws to include the crypto industry, with the possibility of developing more legislation in the future. This disparity in regulatory approach has prompted the International Monetary Fund to warn that divergent regulatory paths will make it difficult to coordinate efforts later, and may give exploiters the opportunity to engage in illegal financial activities using cryptocurrencies.

Despite significant growth in Bitcoin’s market value, which exceeded $3.7 trillion for the crypto asset market at its peak in 2024, with Bitcoin alone accounting for over 60% of the total value, major central banks are still far from adopting it. Christine Lagarde, President of the European Central Bank, has confirmed that central banks will not hold Bitcoin in their reserves anytime soon, saying that “reserves must be liquid and safe,” and that Bitcoin, with its high volatility and risks associated with money laundering and illicit activities, does not meet these standards. Rather, officials at the European Central Bank described Bitcoin as “not suitable as a means of payment or as an investment” and that “its fair value may be zero.” In the same vein, US Federal Reserve Chairman Jerome Powell stated in late 2024 that the central bank “is not allowed to own Bitcoin” and that he is not seeking to change the law in this regard.

Instead of adopting a decentralized cryptocurrency, central banks around the world are moving towards developing their own digital currencies to maintain control. According to a recent report, there are 130 countries – representing approximately 98% of global economic output – studying or developing central bank digital currencies (“CBDC”), and about half of them have reached advanced stages of experimentation or actual launch. This trend reflects the desire of countries to benefit from blockchain technologies and digital currencies without sacrificing the sovereignty of their monetary policy. If Bitcoin replaced national currencies as a unified global currency, central banks would lose their traditional tools for controlling the money supply and interest rates, which could undermine their ability to manage the economy, and therefore monetary institutions remain very cautious about this scenario.

Another aspect that cannot be overlooked is security considerations. Although Bitcoin’s block chain technology is highly reliable, trading platforms and digital wallets are not immune to hacks. Cryptocurrency exchanges have been subjected to massive thefts, with an estimated $2.2 billion worth of digital assets stolen during 2024 alone as a result of piracy operations – a 21% increase over 2023 losses – noting that 2022 witnessed the record for cryptocurrency thefts with a total of $3.7 billion. Such incidents undermine the confidence of users and decision-makers, especially since savings can be lost with the push of a button if hackers manage to penetrate a platform or obtain secret keys. In addition, technical complexity leads to users themselves making mistakes in saving passwords and private keys, causing permanent loss of their Bitcoins; It is estimated that between 3 and 4 million bitcoins have been lost forever due to forgotten keys or lost devices.

The environmental dimension cannot be ignored in evaluating Bitcoin adoption on a global scale. The Bitcoin mining mechanism consumes huge amounts of electrical energy to operate computers and solve complex cryptographic equations. It is estimated that the network consumes more than 204 terawatt-hours annually, a level that is close to the electricity consumption of a country like Thailand. This has drawn criticism from international bodies and environmental organizations, especially since a large portion of Bitcoin mining relies on non-renewable energy sources such as coal and gas, which raises the carbon footprint. Therefore, any step towards converting Bitcoin into a global currency must take into account addressing these challenges by shifting towards clean energy mining and less consuming technologies.

In sum, although Bitcoin has proven itself over more than a decade as a remarkable financial innovation and the largest cryptocurrency, and although it is a theoretical candidate thanks to its universality and neutrality to be a unified global currency, real-life and regulatory obstacles make this scenario unlikely at the present time. For many governments, Bitcoin will remain a high-risk investment asset, more like “digital gold” that stores value rather than a substitute for their national currencies that support their economies. In the coming years, we may witness an increase in the role of Bitcoin as a complementary reserve asset – as some studies predict the possibility of several central banks holding it alongside gold within this decade – but transforming it into a common legal currency for the world requires unprecedented international consensus and overcoming its current fluctuations and risks. Until this is achieved, central banks will remain committed to their monetary sovereignty by developing their own digital currencies, while Bitcoin remains a major player in global financial markets, but outside the framework of the unified official currency.