Deutsche Bank: cryptocurrencies are capable of crowding out cash by 2030
Deutsche Bank: cryptocurrencies are capable of crowding out cash by 2030
Jim Reid, a strategic development specialist at one of Germany’s largest credit institutions, Deutsche Bank, prepared the Imagine 2030 report, which says that the world will undergo a transformation of the monetary system, which will be associated with the increasing spread of cryptocurrencies.
The analyst believes that the growing demand of mankind for “intangible payment instruments”, as well as concern for maintaining the secrecy of privacy, will lead to the fact that digital currencies will be in increasing demand.
As a result, by 2030, it is expected that in a significant number of countries in the world, cash will give way to cryptocurrencies.
Up to this point, cryptocurrencies need to “solve” several issues. One of them is that cryptocurrencies need to become a legitimate financial instrument in most countries of the world. However, this is not all: The raid indicates that the circulation of digital coins requires significant energy consumption.
In addition, it need to understand how competition between various cryptocurrencies can take place in the digital sphere and what potential risks or even “digital financial crises” this can lead to.
Finally, a global roadmap is needed to build effective defense of cryptocurrencies against potential hacker attacks.
If all this is resolved, then “the divide between cryptocurrencies, financial market institutions, as well as other subjects of a market economy will disappear”, Reid concludes.
It is worth noting that the arrival of states of different countries to cryptocurrencies can take place much earlier than by 2030.
Recently, the Bank of Japan recognized that existing cryptocurrencies work so efficiently that the country does not need to launch its own cryptocurrency (CBDC).
At the same time, a number of states, including China, Turkey, the British Virgin Islands and the Marshall Islands, announced that they intend to launch stablecoins, and many more countries, including France, are ready to test such crypto coins.
