In this year’s annual general report titled ‘a bumpy ride ahead’, the IMF has affirmed that crypto assets have the potential of traditional currencies. According to the report,
“Crypto assets have the potential to combine the benefits of traditional currencies and commodities. Like fiat money, they can potentially be exchanged for other currencies, be used for payments, and store value
The annual report which the International Monetary Fund (IMF) compiles and publishes each year, gives a detailed overview of the global economic state. The report has indicated that although the crypto market has seen a significant appreciation between last year and this year, the market holds a share not more than 3% of the combined value of the world’s four largest central banks.
Of the total cryptocurrency value, Bitcoin holds a 47 percent share, Ethereum 15 percent, and ripple holds an 8 percent share. The report has also indicated that the move by Chicago Mercantile Exchange (CME) and Chicago Board Options Exchange (CBOE) to introduce Bitcoin futures, did not have a significant effect.
The report further notes that the futures volumes’
“ Represent a small fraction of overall trading activity on the CME and CBOE and only 2.3 percent of reported trading in the Bitcoin cash market on [cryptocurrency exchanges] CEs ” IMF has also recognized that the technology underpinning the cryptocurrencies is capable of revolutionizing the financial market.
Additionally, the IMF report has indicated that 14 leading cryptocurrency exchanges globally account for >80% crypto trading volume with the leading 10 cryptos accounting for 82% of the overall trading volume. At the cryptocurrency exchanges, crypto paired with the US dollar performed better at 71% followed by the Yen at 14% and the euro at 11%.
The IMF report has echoed its chair, Christine Lagarde, who recently observed that cryptocurrencies will alter the way we pay our bills, save, and invest.
With the IMF stamping that crypto assets have the potential of traditional currencies, do you think the IMF is preparing the world for a mass crypto adoption?
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