June 14, 2021

Deutsche Bank: “Bitcoin will not become a reliable currency.” The problem is volatility

According to a study by Deutsche Bank, the first cryptocurrency will yield to stablecoins, and digital money will become mainstream for two years.

Bitcoin price fluctuations prevent it from becomingreliable currency, says a series of three reports from Germany’s largest financial conglomerate, Deutsche Bank. As an argument, the period from the beginning of 2017 to February of the following is considered, during which the rate of the first cryptocurrency soared from $ 1000 to $ 20,000, and then dropped to $ 7000.

In contrast to Bitcoin, the report citesstablecoins. Their volatility is excluded, since the rate of such cryptocurrencies is ensured by linking to real currency or using a basket of assets. At the same time, it is indicated that non-controlling digital coins pose a threat to the political and financial stability of states.

The report notes that cash is notwill disappear in the next decade, but it is emphasized that their use has significantly decreased against the background of an increased volume of transactions in cryptocurrencies. Currently, the number of wallets related to various digital coins is about 50 million, and this number is likely to increase to 200 million by 2030, researchers at Deutsche Bank suggest.

In addition, they predict that cryptocurrenciesbecome mainstream in two years. The main drivers for their adoption are the digital yuan and the Facebook Libra payment system under development. After the release, they will be available to more than 1.5 billion Chinese citizens and 2.5 billion users of the social network, which together make up more than half the world's population, the report said.

It emphasizes that even afterdecades of cryptocurrency are still in their infancy. However, their further development is able to radically change the sphere of payments, banking and affect the principles of the activities of central banks, Deutsche Bank believes.

January 21, Circle head Jeremy Aller said thatasset tokenization will become mainstream in ten years. According to the entrepreneur, technically now, a farmer from India can transfer his future harvest to the blockchain.

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