January 28, 2023

Cryptocurrency will supplant fiat money in 10 years

Cryptocurrency will supplant fiat money in 10 years

The forces supporting the fiat money system look fragile, and over the next decade some of them may decay. As a result, demand for alternative currencies will increase - from gold to cryptocurrencies, this was the opinion of the German banking giant Deutsche Bank in its 2030 Imagine report.

“Despite the fact that many complain about cryptocurrencies because they are limited by regulatory barriers, we believe that the introduction of digital currencies into our lives is inevitable”, - says the report of Deutsche Bank Research.

Despite the fact that cryptocurrencies failuse as a means of payment, despite such well-known advantages as security, speed, minimal transaction fees, ease of storage and relevance in the digital era, everything can change in the next decade.

According to researchers, if the currenttrends will continue, in 2030 200 million users of blockchain wallets may appear, and ultimately, cryptocurrency can crowd out cash.

"According to the primary study of dbDig (DeutscheBank Data Innovation Group), nearly two-thirds of consumers prefer dematerialized funds to cash payments, while still others are concerned about anonymity. These are the two things that cryptocurrencies do best. ”- the report says.

In addition, despite the bans, China and India will play an important role.

Cryptocurrency will supplant fiat money in 10 years

Meanwhile, researchers emphasized that cryptocurrencies must overcome three main obstacles in order to be widely used:

“First, they must be legitimized in the eyes of governments and regulators. This requires stabilization of prices and providing benefits to both sellers and consumers.

They must also take into account global market reach.payments. To do this, it is necessary to create alliances with key stakeholders - mobile applications such as Apple Pay, Google Pay, card providers such as Visa and Mastercard, and retailers Amazon and Walmart.

To ensure a transition to a fully digital platform, the financial system must be prepared to overcome blackouts and cyber attacks.

At the same time, "fiat money systems must demonstrate instability and, ceteris paribus, be subject to high inflation."

According to researchers, it is possible that inflation will increase, so people will have doubts about the stability of fiat money.

“By the onset of 2030, demand for alternativethe currency is likely to grow significantly, the document says, and it’s hard to say whether fiat currencies can survive the political dilemma in the next decade. The authorities will need to find a way to balance high returns with record levels of debt. ”

We have been living in the era of fiat money since the early 1970syears. Since then, almost all existing money has been of value only on the basis of trust and, in particular, trust in the ability of governments to maintain it. Prior to this period, most of the money was supported by a commodity — usually precious metal, gold or silver.

Curiously, the survey showed that less than a thirdJapanese citizens polled advocate mass adoption of cryptocurrency. The Ministry of Education of Japan interviewed about 3,000 citizens, 82% of whom said they want to see more achievements in the field of robotics. 80% of respondents said they expect a future in which 5G telecommunication networks will play a key role. And only 30% of respondents aged 15 to 69 said that cryptocurrencies play a key role in the future.