One of the latest academic researches claims that cryptos will become a mainstream payment method sooner than we think. This report emerges as positive news for the digital currency market, which has been experiencing a downtrend this year.
10 July, AtoZ Markets – Imperial College London has published a report, where it claims that cryptocurrencies will be used as a mainstream financial payment method.
Imperial College London: Cryptos will Become a Mainstream Payment Method
During past years, a lot of research reports have appeared negative on cryptocurrencies. The scientists have repeatedly criticized the long-term potential of digital currencies. However, it seems that this time, cryptocurrencies got a green light from academic researchers.
Imperial College London’s study talks about Bitcoin and cryptocurrencies. The authors of the research have endorsed cryptocurrencies, stating that they are a viable evolutionary “next step” for money. It was also mentioned that cryptos have the potential for mass adoption, thus they can enter the mainstream financial market during the next decade.
The report has been entitled “Cryptocurrencies: Overcoming Barriers to Trust and Adoption.” It claims that Bitcoin and other cryptocurrencies will be utilized as a means of a daily payment mode for services and goods.
Cryptos Fulfill Fiat Currency Roles
Professor William Knottenbelt from Imperial College London and Dr. Zeynep Gurguc from Imperial College Business School state that cryptos have the features to fulfill the key fundamental roles of the traditional fiat currency.
These roles include:
- Store of value: allowing individuals to make intemporal choices on when to spend their purchasing power;
- Medium of exchange: facilitating the exchange of goods and services by eliminating the inefficiencies associated with a barter economy;
- Unit of account: acting as a measure of value in the economic system.
The report further states that “meeting the last two criteria will require bitcoin and other cryptocurrencies to make progress on remaining challenges such as scalability, design, and regulation.”
Yet, some of the banking experts have stated that cryptocurrencies cannot be regarded as “currencies,” due to their speculative nature and high volatility. In addition, many have argued that the cryptocurrency technology is not able to handle the mass payments just like MasterCard or Visa do. Commenting on this, Professor William Knottenbelt says:
“The world of cryptocurrency is evolving as rapidly as the considerable collection of confusing terminology that accompanies it. There’s a lot of skepticism over cryptocurrencies and how they could ever become a day-to-day payment system used by the man on the street. In this research, we show that cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment.”
Imperial’s Zeynep Gurguc, the co-author of the report, has stated:
“New payment systems (or asset classes) do not emerge overnight but it is worth noting that the concept of money has evolved – even in our lifetime – from cash to digital or contactless payments.”
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