June 25, 2024

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 someof them may disintegrate.As a result, demand for alternative currencies will increase — from gold to cryptocurrencies, this is the opinion reached by the German banking giant Deutsche Bank in its Imagine 2030 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 a report from 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, there could be 200 million users of blockchain wallets in 2030, and eventually cryptocurrencies could replace 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. ”, — says the report.

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 the global reach of the marketpayments. To do this, it is necessary to create alliances with key stakeholders &#8212; mobile apps 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 2030, the demand for alternativecurrency is likely to rise significantly, &#8212; the document says, &#8212; Whether fiat currencies can survive the political dilemma of the next decade is difficult to say. Policymakers will have to find a way to balance high yields with record debt levels.”

We have been living in the era of fiat money since the early 1970syears. Since then, virtually all existing money has had value only on the basis of trust and, in particular, trust in the ability of governments to maintain it. Before this period, most money was supported by goods &#8212; usually a 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.