When the Bitcoin ETF was approved, it opened a new page for Bitcoin, officially making it a part of the mainstream financial system, which could create competition for other currencies such as the US dollar or euros. This could lead to the weakening of some traditional currencies and push them to look for ways to improve and modernize.
How will Bitcoin compete with dollars and euros? Do you think the US government accepts bitcoin ETFs so that bitcoin can compete with the dollar? I don't think they are that stupid.
By the way, they accept bitcoin ETF, which means they treat it as an asset, an investment, not allowing bitcoin to become a currency.
Traditional banking will also be challenged with the emergence of Bitcoin as cross-border money transfers are almost faster, easier and eliminate many complicated intermediaries when using Bitcoin. This means banks may have to adapt by offering new services or finding ways to integrate blockchain technology into their operations.
Banks provide dozens of services to users and play an important role in our economy, banks are not only used to deposit money or transfer money across borders. Banks aren't limited to those little things, so bitcoin can't easily challenge banks' dominance either. Don't be too naive to think that bitcoin is so big that it can challenge the world.
On a more macro level, Bitcoin can affect the monetary policy of a certain country. If Bitcoin becomes more popular and affects the global financial system, authorities such as Central Banks may need to reconsider their approach to currency management.
Until now, bitcoin was just an asset, an investment. It has not made any significant impact on the economy or financial system of any country, let alone the world.