A fresh research report out of Deutsche Bank suggests that cryptocurrencies could replace cash by 2030. According to Deutsche Bank‘s research report, this development hinges on crypto becoming “substitute” to fiat currencies rather than a monetary “addition”.
Deutsche Bank research paper speculates that crypto could kill cash
This news came out in Deutsche Bank‘s recent “Imagine 2030” research report. As the name suggests, this report imagines upcoming changes that will potentially impact the German bank behemoth.
Furthermore, the bank also notes that the current fiat currency system appears “fragile” after “decades of low labor costs and inflation”. In addition to this, the report also finds that large corporations may play a vital role in boosting adoption of cryptocurrencies.
For example, the report highlights technology companies such as Google, Apple, Facebook and Amazon as potential actors. This directly corresponds with Facebook’s ongoing efforts to launch its Libra cryptocurrency – even though this is currently facing issues.
“If one of the GAFA [Google, Apple, Facebook and Amazon] (or their Chinese counterparts BATX [Baidu, Alibaba, Tencent and Xiaomi]) for example are able to overcome regulatory hurdles [… ] this would broaden the appeal of cryptocurrencies, hasten their adoption, and give them the potential to eventually replace cash”
In addition to this, the report also notes that the public’s fondness of fiat currencies could quickly fade. This is making the traditional fiat currency system look “fragile”, according to the research report. Furthermore, it could also lead to a rapid increase in the demand for “alternative currencies, from gold to crypto”.
“Will fiat currencies survive?”
Moreover, the research report also states that cryptocurrencies’ benefits will likely become evident in the coming years. It cites superior speeds, security, minimal transaction fees, easy storage and “relevance in the digital era” as customer benefits.
The report also draws a parallel between the emergence of the Internet and the forecast for large-scale Bitcoin adoption. Consequently, it suggests that cryptocurrencies could become the “21st-century cash”, as consumers prefer digital currencies to cash.
“Will fiat currencies survive the policy dilemma that authorities will experience as they try to balance higher yields with record levels of debt? That’s the multi-trillion dollar (or bitcoin) question for the decade ahead.”
Nevertheless, the report also notes that cryptocurrencies first will have to become legal in the eyes of governments and regulators. Additionally, it also suggests that this would bring with it price stability and greater global cryptocurrency reach.
These suggestions are certainly not new. Many other cryptocurrency observers have long held similar views. However, seeing that Deutsche Bank is now echoing these sentiments is particularly notable. It remains to see whether the banking giant’s predictions end up being correct.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.