Cryptocurrencies are the "next natural step" for the global economy, academics from Imperial College London have claimed in a new report that suggests people could be paying for their weekly shop in Bitcoin within a decade.

The study, commissioned by cryptocurrency exchange eToro, presents research from Professor William Knottenbelt and Dr Zeynup Gurguc, who claim that digital coins like Bitcoin or Ethereum have already passed one of the three fundamental tests to become a bona fide currency: acting as a store of value. 

They suggest that it is possible that digital coins like Bitcoin could soon fulfil the two remaining roles necessary to become a legitimate currency,  such as becoming a medium of exchange by making it easy for people to exchange goods and services and also prove it can be used as a unit of account, acting as a measure of value in the economic system. 

At the moment long transfer times and amounts of processing power needed to facilitate this means cryptocurrency is limited, plus barriers including lack of technical knowledge by the mainstream and lack of regulation must be overcome.

The study comes days after the Bank of England warned City bosses that being lured into the craze could expose their businesses "to reputational risks" and fraud.

Professor William Knottenbelt said that despite "scepticism", he believed that  "cryptocurrencies have already made significant headway towards fulfilling the criteria for becoming a widely accepted method of payment".

Iqbal Gandham, UK Managing Director of cryptocurrency exchange eToro said: “Given the speed of adoption, we believe that we could see Bitcoin and other cryptocurrencies on the high street within the decade. There are of course barriers to mainstream adoption, but they are far from insurmountable."

Dr. Zeynep Gurguc from Imperial, said:“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. The wider use of cryptocurrencies and crypto-assets is the next natural step"