Bitcoin is used for cross-border payments and remittances as it eliminates intermediaries. Bitcoin can be used by people 
who cannot access mature banking systems and empowers individuals in developing countries with its decentralized properties. 
Bitcoin also can be used against inflation and currency devaluation owing to its fixed supply owing to its decentralization that 
mitigates risks associated with centralized financial systems. Bitcoin can replace an international currency when its problems such as solve volatility, scalability issues, regulatory uncertainty, security risks, and lack of acceptance are solved. As solutions, 
algorithms and smart contracts, collateralization, regulatory frameworks, and policies and market interventions are required as they can be used to adjust Bitcoin's supply and improve liquidity. Lightning Network can be used to provide appropriate transactions. 
With such solutions, Bitcoin can be used as an international currency. Advantages to using Bitcoin help global society mitigate 
diverse divides in the global economy.

A national currency is issued by a country's central bank or monetary authority. It is the primary medium of exchange with a 
value recognized and agreed upon in a society for the purchase of goods and services and trade and commerce within the country
and with other countries. Central banks of countries formulate monetary policies to control the amount of currency to manage 
inflation, interest rates, and the economy of the country (Bamigbola, 2024). The concept of the currency has changed in different 
periods of history. In ancient times, people exchanged goods and services, which was inefficient as there must be a coincidence of 
mutual wants. The earliest coins appeared in the history of China around 640 BC, which were the first standardized currency. Then, 
paper money was preferred to coins as people needed convenient and portable forms of currency. Recently, digital forms of currency 
have emerged (Andrew, 2024). Cryptocurrencies such as Bitcoin have been created and used for the following purposes: medium 
of exchange, investment, remittances, decentralized finance (DeFi), Smart Contracts, Tokenization, Supply Chain Management, 
Voting, Gaming and Virtual Goods, and Donations (Investopia, 2024; Nambiampurath, 2023; Crooks, 2023). 
In managing national currencies, challenges are arising related to inflation due to the excessive supply of money, depreciation
due to a weak currency, exchange rates that cause market distortions, and the loss of control due to the preference for foreign 
currencies or cryptocurrencies (Troy, 2021). According to the policies of central banks or monetary authorities, upvaluation and 
devaluation can occur. Upvaluation causes imported goods to be cheaper and reduces inflation but can undermine export 
competitiveness, while devaluation boosts exports but increases import costs and causes inflation, respectively. Sometimes, a 
government introduces a new currency to ensure public trust and manage the transition (Bamigbola, 2024).
To overcome the challenges of the traditional national currency, cryptocurrency was invented pursuing DeFi. Cryptocurrency
is a digital and virtual currency using cryptography for security. Different from traditional currencies, cryptocurrencies are used on 
decentralized networks based on blockchain technology. This technology ensures transparency and security by recording all 
transactions on a public ledger. Bitcoin is the first cryptocurrency. Since having been created in 2009, Bitcoin has been the reference 
for other cryptocurrencies. Especially, as the most popular and trustable cryptocurrency, Bitcoin can address such challenges as 
traditional national currencies.
While a failure to control the supply of national currencies can cause inflation, Bitcoin has a fixed supply of 21 million coins, 
which prevents inflation caused by oversupply. The scarcity of Bitcoin helps maintain its value over time (Andrew and Brian, 2022). 
Bitcoin operates on a decentralized network as it is not affected by a country’s economic policies. Therefore, a more stable value
can be secured, especially in countries with volatile currencies (Motiz and Dusan, 2023). Weak national currencies lead to 
depreciation and the rise of goods imported, causing economic instability. The exchange rates of national currencies always fluctuate, 
which brings about market distortions. However, as Bitcoin is used for cross-border transactions without the need for currency 
exchange, the impact of the exchange rate on trading and markets does not exist. In addition, as Bitcoin is used in all countries, it 
allows for safe and trustable transactions and savings, especially in regions with unstable national currencies (Henry, 2023; Chenguel, 
2024).
However, Bitcoin has been at the center of debates on its viability as a national currency. Several countries are exploring the 
use of Bitcoin as a national currency. However, there are significant challenges even with promising prospects. Thus, we delve into 
the rationale of and the counterarguments against adopting Bitcoin as a national currency. Taking the policies of central banks 
worldwide as examples, we explore how to soft land when using Bitcoin as a national currency, too.

Full Text :  https://doi.org/10.35745/ijbsi2024v04.03.0001