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#### The rise of government virtual currencies
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If from a purely technological point of view, the growth of dApps will certainly give much to talk about. Government virtual currencies will probably generate in the short term. A greater amount of political and economic consequences.
Well, they represent the entry of the State into a sector that until recently was reserved for some fans of cryptographic technology. Recognizing in this way, the importance of Blockchain technology for all the processes of our modern world. And stating your intention to participate in these transformations.
In addition, these virtual government currencies would also be a sign of the will of the State to regulate this sector. Since, when entering the crypto market with their own currencies. Governments try to replicate the capabilities and characteristics of cryptocurrencies. But putting them under your control and at the service of your goals.
Therefore, these currencies end up being an interesting challenge to which the crypto world will have to respond intelligently. Well, both government virtual currencies and business virtual currencies. They are important competitors for crypto assets such as Bitcoin. Which, could displace this currency. At least if it fails to keep pace with changing times.
#### The IMF opinion
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But, beyond the debate over whether government virtual currencies will be able to replace cryptocurrencies. There is one more important in the short term, and that generates more discussions. Will these new currencies be able to replace traditional fiat money?
On this subject the Chief Economist of the International Monetary Fund, Gita Gopinath, has her own opinion. Well, according to the international official, government virtual currencies, and cryptocurrencies in general. They lack the infrastructure and international acceptance necessary to replace currencies with the strength and tradition of the US dollar.
> “Advances in payment technologies do not address the fundamental issues of what it takes to be a global reserve currency (…) The status of the dollar is reinforced by the institutions, the rule of law and credible protection of investors who the US, ”said Gopinath in an [editorial published by the Financial Times](https://www.coindesk.com/digital-currencies-wont-replace-us-dollar-any-time-soon-imf-chief-economist)
This does not mean that the IMF chief economist is denying the importance or usefulness of government virtual currencies. Especially to balance international trade. But, for Gopinath, the influence of these currencies must be consolidated over time. Not being a process that can be carried out overnight.
So, according to this editorial. The key element for the success or failure of government virtual currencies, and the rest of cryptocurrencies, is trust. Which will have to be winning over time, giving tangible samples of its strength.
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