There are many conclusions reached by researchers from the International Monetary Fund and which have been reflected in the report “The rise of digital money“ published this past July 15th. These can be summed up in that it’s a matter of time before digital money outperforms traditional money and that central banks will start issuing their own digital currencies.
In fact, many central banks today are already considering issuing their own Central Bank Digital Currency (CBDC), for this they have been investigating the effect this would have on the different financial and economic structures. However, these CBDCs in most cases would not be anonymous, as are cryptocurrencies, since these entities want to be able to track the operations carried out with them.
The document also questions the current virtual money due to the lack of stability of its value, which slows its popularity due to the uncertainty that it creates to invest an amount that is not possible to know if it will recovered at 100%. According to the IMF, the issuer of digital currencies must be able to give this guarantee, as is the case with traditional currencies in its digital version. Basically it would be what we know as stablecoins.
On the other hand, the report also indicates that traditional banks should evolve at the same pace as technology companies are doing if they don’t want to take the risk of being left behind. Even so, the IMF predicts that not everyone will achieve it and financial institutions that don’t take the technological leap in time will tend to disappear.
If anything we can conclude from this study is that both consumers and government authorities are increasingly supporters of the fintech sector and that this support is going to be what makes technology advance by leaps and bounds over the next few years.