WASHINGTON—The International Monetary Fund (IMF) in a new report says digital currencies could replace traditional cash and bank deposits, citing the rapid rise in adoption of cryptocurrency.
The IMF report, titled “The Rise of Digital Money,” said traditional money would face “tough competition and could even be surpassed” by cryptocurrencies, with more people using cryptocurrency worldwide than ever before, CoinGeek reported.
Reacting to the IMF note, Nick Cowan, CEO of the Gibraltar Stock Exchange (GSX) Group, said digital currency was already mainstream, and on course for a “total digital takeover.”
‘Firmly Embedded’
“The concept of digital currency is now firmly embedded in the mainstream, a trend that is set to gain increasing traction according to the latest report from the IMF. The report acknowledges several scenarios that could play out in the future, from coexistence between digital currencies and traditional money, to a total digital takeover,” he noted.
Cowan said the rise of cryptocurrencies is being driven in part by the failings of the legacy banks and financial services, CoinGeek noted.
“It is important to remember that the rise of bitcoin and digital assets has been fueled, in part, due to growing dissatisfaction with the status quo of traditional finance and the associated problems such as transaction delays, unnecessarily protracted processes, and frustrating intermediary fees. As long as these issues are prevalent, the allure of digital currency will be strong,” Cowan said.