With the robust performance of the decentralised Bitcoin digital currency, traded by exchages like Quoine, reaching new heights as it entered 2017, outperforming a number of traditional fiat currencies, it has also generated discussion of its potential role in a cashless future. The performance of bitcoin also corresponds to the increased focus on the blockchain technology – essentially a distributed digital ledger – that underlies the virtual currency and its derivatives like Ethereum and Litecoin.
An IMF study observes that virtual currency schemes are essentially private sector systems help peer-to-peer (P2P) exchange bypassing traditional central clearinghouse and offer potential benefits through their dis-intermediating effect which includes greater speed and efficiency in making payments and transfers. Ultimately, this promotes financial inclusion.
