Central banks and conventional financing institutions are learning more about crytocurrencies, especially Bitcoin, to prep themselves for competition arising form the emergence of fintech. Bank notes have long been the standard legal tender in almost all countries known to the world. However, Bitcoin and other crytocurrencies have drawn much attention from central banks. However, cryptocurrencies are nowhere near overtaking or replacing bank notes as legal tenders recognised by central banks, according to an industry expert. In an interview with SME, Bill Barhydt, founder and CEO of ABRA shared his professional knowledge and opinion with me. He said that Bitcoin’s value is fluctuating because it is not backed any other commodities. In fact, central banks treat Bitcoin as a type of commodity. Using the United States as an example, he said, “The Federal Reserve (Fed) does not recognise Bitcoin as a legal tender, because if it does so, Bitcoin would be competing with the US Dollar. The Fed sees it as a commodity for investment purpose. “Bitcoin’s current volatile value is due to the size of its capital market, which is not as huge in comparison to other commodities. “The problem with Bitcoin’s trading activities now is that people or focussing on buying the cryptocurrency, and much lesser are selling. It is easier to influence the price when you are holding on to a lot of Bitcoins,” explained Barhydt.