Cryptocurrency in its current form transcends borders and regulations, which has both positive and negative impacts. It is not controlled or influenced by central banks like fiat currencies in developed countries. Central banks use monetary policy tools to influence inflation and employment through interest rates and open market operations. Decentralization, one of the core principles of cryptocurrencies, makes these tools unnecessary.

Additionally, if virtual currency were to replace fiat currency in its current state, consumers may not have access to economic recourse or protection.

The impact of complete replacement of fiat currencies is still being studied and evaluated. There could be significant adverse effects on economic and financial stability, or the changes could usher in a period of complete global stability.

The International Monetary Fund (IMF) recommends against adopting virtual currencies as currencies in major countries in their current state due to price fluctuations. Additionally, the organization believes that the risks of a lack of macro-financial stability and consumer protection need to be addressed.

However, the IMF recognizes that adoption is most likely to occur more quickly in countries where virtual currency risks imply improvements to existing financial systems.

Virtual currency has unlimited possibilities and is clearly advantageous as a currency. For example, many Ukrainians turned to cryptocurrencies after fleeing the Russian invasion in 2022. Without cryptocurrencies, many people might not have the money to survive.

It is also used by many people in countries with severe fiat devaluation to maintain savings, send money, and transact business.