The IMF Says that Cryptocurrencies and CBDCs Are an Alternative to Traditional Finance

According to the IMF, some cryptocurrencies and central bank digital currencies (CBDCs) may be a more effective payment solution than credit and debit cards.

In addition, the IMF has reported that some central banks are considering introducing CDBCs on physical cards, which would foster their adoption by the masses.

According to the organization, energy consumption will be crucial in determining the future of money, especially with payment systems that use distributed ledger technology.

According to the official position, proof-of-work (PoW) cryptocurrencies, such as Bitcoin, consume more energy than credit card transactions, and focusing on digital assets with a different consensus mechanism would be advisable.

The IMF has previously argued the growth of cryptocurrencies poses a threat to financial stability, calling on authorities to act quickly and adopt the necessary rules for the sector.