IMF Says Crypto and CBDCs Are an Alternative to Traditional Finance

The International Monetary Fund (IMF) has said that digital assets can become a more effective alternative to traditional financial products.

According to a publication made by the organization, some cryptocurrencies and central bank digital currencies (CBDCs) can be a more efficient payment solution than credit and debit cards.

In addition, the IMF has reported some central banks are considering the presentation of CDBC on physical cards, which will contribute to mass adoption.

According to the organization, energy consumption will be crucial for determining the future of money, especially with payment systems using distributed register technology.

According to the official position, proof-of-work (PoW) cryptocurrencies consume more energy than credit card transactions, so it is better to focus on digital assets with a different consensus mechanism.