According to a new study, cryptocurrency can become a major means of payment within the next ten years and they already match one of the three key criteria of money. The study was conducted by Imperial College and by the exchange eToro.
The report, titled “Cryptocurrency: overcoming barriers of trust and acceptance,” prepared by Professor William Knottenbelt from Imperial College and Dr. Sanepa Gurucom from the business school of Imperial College, said that cryptocurrencies are a “natural next step” in the development of money and can become a major payment instrument “within a decade”.
Cryptocurrencies are already doing one of the three fundamental functions of money as means of storing value, while they still perform the other two functions. They cannot yet be called a medium of exchange and unit of account.
In order to become “money” in the classic sense of the word cryptocurrency have to “solve” six key objectives: scalability, usability, regulation, the volatility and attractiveness and privacy.
The report stresses that new payment systems and asset types “do not appear overnight”. Iqbal Gandham, managing Director of eToro in the UK, said that the first email was sent in 1971 and it took about three decades to become commonplace.
Gandham, who is also Chairman of the British branch of the group CryptoUK, noted that since the first bitcoin transaction was “a little more than eight years,” and “today we can already see that bitcoin is starting to meet the requirements for money”. He added that the ability of crypto currencies to simplify international payments can be a factor that will play a key role in the adoption of this new method of calculation.