In a recent blog post, the IMF underlined that some specific cryptocurrencies and central bank digital currencies (CBDCs) potentially offer better and more effective payment alternatives than credit cards, debit cards, and other traditional banking systems.
The financial institution said that numerous Central Banks intend to implement CBDCs-supported payment solutions in physical cards.
As a result, there is a likelihood that future credit card processing systems will be extremely efficient, particularly in terms of energy usage.
CBDCs and some types of crypto assets may be more power-efficient than a large portion of the present payment landscape, such as credit and debit cards, depending on the specifics of how they are set up.
Even if the direction of the financial system is still uncertain, the IMF advised policymakers and government organizations to examine the energy efficiency of cryptocurrencies and CBDCs before adopting them.
IMF predicts that the energy factor will have a big impact on future financial systems, especially those based on blockchain technology or distributed ledger technology (DLT).
The IMF agency specifically noted that credit card-based payment methods are more efficient than Proof-of-work Consensus model-based blockchain networks like the Bitcoin blockchain, so we must adopt that cryptocurrency payment system that mirrors Proof-of-stake which is based on an efficient Consensus model.
The IMF previously warned that a rise in cryptocurrency usage may lead to financial instability. The Agency placed a strong emphasis on the adoption of extremely stringent cryptocurrency rules at that time.
The 190 nations that comprise the organization strive for sustainable growth and prosperity. In the past, it has frequently been observed that the IMF took opposing positions against the widespread use of cryptocurrencies while consistently supporting limited regulation of the cryptocurrency and blockchain industries.
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