The highly-regarded International Monetary Fund (IMF) published a video post on Twitter speaking highly of cryptocurrencies and Bitcoin as the inevitable evolution of the money we have today. Within the said tweet, the IMF highlighted the strengths and weaknesses of cryptos while also giving thoughtful examples regarding the issues plaguing our current payment schemes.
IMF stated three particular glaring issues whenever people purchase or sell out things. First is that the companies responsible for the transaction would often pocket a slice of the transacted money. Secondly, people are forced to give their trust to such companies to safeguard their provided private data from cybercriminals. Last but not least is that international payments are needlessly expensive and very time-consuming.
As per the international organization, these issues could easily be remedied by transitioning to Bitcoin and cryptocurrencies in general. This is because there is no need for a middleman whenever transacting via cryptos. Whenever someone sends digital currencies, the money will be directed to them; there would be no third-party whatsoever. On top of that, the transaction made would be broadcasted throughout the network and shall be permanently recorded. This means that fooling and taking advantage of the system is near impossible to pull off.
Furthermore, transactions would be remarkably faster, despite costs being significantly lower. By utilizing cryptocurrencies, even those who do not have bank accounts may have the opportunity to purchase or sell goods and participate in the international economy.
Concluding the video tweet, IMF has also shared the weaknesses digital assets currently have and warned people about the risks it entails. With that being said, the IMF believes that the positives heavily outweigh its negatives; they stand by their take that cryptocurrencies are the future of money.