August 4, 2021

Deutsche Bank: cryptocurrencies will replace paper money by 2030

According to a new study by Deutsche Bank, by 2030 the demand for alternative currencies will increase significantly, which will lead to the disappearance of fiat currencies.

The Imagine 2030 report has a chapter on globalDeutsche Bank fundamental credit strategy Jim Reid recalled the problems that the current monetary system has faced in recent years. He said that the increased demand for intangible assets and their anonymity will attract more people to digital currencies.

However, in order for cryptocurrencies to become morepopular, you need to solve three major problems. We are talking about doubts of governments and regulators about the legitimacy of digital currencies, as well as price fluctuations and a small penetration into global markets. Creating systems with mobile applications and plastic cards will help solve these problems.

Reid also noted that the more will beThe spread of cryptocurrencies, the more problems will arise. For example, a new financial system based on digital currencies will appear, which will depend on the availability of electricity, and will also be susceptible to attacks by hackers.

“When such a system appears, the line between cryptocurrencies, financial institutions, as well as public and private sectors of the economy will be blurred,” Reid emphasized.

Note that many states are developingown cryptocurrencies. So, the Central Bank of France plans to begin testing its own digital currency next year. The Central Bank of Europe is also exploring the possibility of issuing a state cryptocurrency.