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Fiat Money System Is Weak, Crypto Is Inevitable: Deutsche Bank

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The fiat money system looks fragile and weak and over the next decade, some of the people will begin to demand alternative currencies such as gold and crypto as per the reports by the banking giant Deutsche Bank as we are reading today in the crypto news.

The report by Imagine 2030 added that it would not be surprising if a new mainstream cryptocurrency will emerge in the upcoming decade:

“While critics bemoan cryptocurrencies as constrained by regulatory hurdles, we believe the incentives of governments and card providers are such that digital currencies are inevitable.’’

While the cryptocurrencies didn’t manage to lift off as a means of payment despite their benefits including speed, security, low fees and ease of storage, this can easily change in the future because the fiat money system is fragile. If the governments decide to back crypto and consumers demand them even more, the trends will continue and there will even be around 200 million blockchain wallet users until 2030 and crypto could replace cash as per the researchers. The report said:

“According to dbDig [Deutsche Bank Data Innovation Group] primary research, nearly two-thirds of consumers prefer dematerialized to cash payments and a third are concerned by anonymity. These are the two things that cryptocurrencies do best.’’

China and India will have a very important role as well since both of the countries banned the purchase and sale of crypto but the things are moving quite quickly. In the meantime, the researchers noted that cryptocurrencies have to surpass some major issued in order to become widespread. At first, they have to become legitimate for governments and regulators which means the prices have to be more stable. They also have to allow global reach in the payment market. in order to do this, the alliances have to be forged with key stakeholders with apps such as Google Pay, Apple Pay, and Visa.

To allow smooth transmissions towards the fully digitalized platform, the overall financial system has to be ready to overcome any kind of electricity shutdown or a hack. In the meantime, the traditional banking giant says that the ‘’fiat money system should be inherently unstable and prone to high inflation all other things being equal’’:

“Politically it is always too tempting to create money when nothing is backing it. That this current fiat system has survived so long has required a fortuitous set of global forces across multiple decades that have created sizeable natural offsetting disinflationary forces.’’

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Ex-CFTC Regulator Launched The Digital Dollar Project

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The Ex-CFTC regulator, better known as the Crypto Dad, is just getting started in the crypto industry with his new role as running a non-profit that aims to digitize the dollar known as the Digital Dollar Project as we are reading in the altcoin news today.Christopher Giancarlo, the now ex-CFTC regulator known as the ‘’Crypto Dad’’ was adored by the crypto community because of his favorable stance towards the digital asset industry and has now partnered up with Accenture to launch his Digital Dollar Project. The initiative is a non-profit that wants to explore the US Central Bank Digital currency and to make possible for future digitization of the US dollar. Giancarlo argued:
 “A digital dollar would help future-proof the greenback and allow individuals and global enterprises to make payments in dollars irrespective of space and time. We are launching the Digital Dollar Project to catalyze a digital, tokenized U.S. currency that would coexist with other Federal Reserve liabilities and serve as a settlement medium to meet the demands of the new digital world and a cheaper, faster and more inclusive global financial system.”
Giancarlo however, could face a lot of pressure and opposition. The CBDCs have already been largely confined to speculation and very little action since now China is the only exception. However, some of the central bankers are really keen on the idea. Last year, Rob Kaplan, the CEO of the Federal Reserve Bank of Dallas which is only one of the twelve regional Reserve Banks in the Federal Reserve System, explained:
 “We have not at the Fed decided to pursue or drive to develop a digital currency, but it’s something we’re actively looking at and debating.”
The former head of the Commodities and Futures Trading Commission has always been open to embracing the digital possibilities. He strongly believes in the blockchain technology and the digitization of assets as we could see in the recently aired Washington Post op-ed of last October when he said:
 “We Sent a Man to the Moon. We Can Send the Dollar to Cyberspace.”
The senior managing director and blockchain lead at Accenture David Treat, confirmed his support for the advocacy efforts saying that a central bank digital currency is the key enabler for further modernization of the financial system and will boost the material economic and social spheres and will form the basis for the wave of more innovation.
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Google Search Volume For Crypto Is Trending Down Despite Surge

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The crypto hype bubble that rocketed Bitcoin and Ethereum into the public eye and made them household names when they reached all-time highs was also accompanied by a surge in search interest of people who were scrambling to find out what the fuss was all about. However, the recent crypto surge on the markets did not come with a change in Google search volume - in fact, the volume has been decreasing.The latest rally has put a lot of cryptocurrencies up by 250% from what they were worth in less than a month. Even Bitcoin surged and the Bitcoin price news now show that BTC is close to $9,000. However, despite the rally and the fact that this downtrend may be over, the rise in prices is not being followed by a rise in Google search volume.Trading volumes also have not seen any uptick which caused a lot of top crypto analysts to wonder what are the actual benefits of this rally. If you have been following our latest cryptocurrencies news for the last few years, you probably know the FOMO effect which swept the mainstream public when Bitcoin rose to $20,000.The more people heard about BTC, the more they bought it which lead to surges everywhere. The Google Search volume for the Bitcoin price also spiked, reaching all-time highs in late 2017.Now, this is not the case. The prices are going up but the search volume is going down. This was also shared on Twitter by an analyst named Haejin who illustrated the unchanged behaviour:https://twitter.com/Haejin_Crypto/status/1217288329382842369So, as the prices are skyrocketing once again, the crypto community is not that convinced that we are beginning to see the start of a larger trend reversal. The Google Search volume has not only started to trend upward - it is actually trending down now and suggesting that even fewer people are interested in Bitcoin (BTC) now.The same attention who called attention to the Google Search volume is also very leery about the entire leary. Haejin claims that lesser rallies over the last few months experienced more volume - suggesting that this is not the crypto reversal we have all been waiting for.https://twitter.com/Haejin_Crypto/status/1217937419158376457
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Australian Reserve Bank Considers Using Central Bank Digital Currency

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The Australian Reserve Bank (RBA) revealed recently that it is considering using the central bank digital currencies in its payment system based on the Ethereum network as we are reading in today’s altcoin news.The Australian Reserve Bank revealed that it has decided to stimulate using CBDC in the wholesale payments system and the plan was to see whether the system will be a good one for banks settles customer payments between themselves and whether they will be able to operate on a permissioned Ethereum-based network. A number of central banks have already started experimenting with digital currencies hoping to create a working system that will soften the impact of Facebook’s Libra. Libra faced regulatory issues and the central banks are advancing their own plans. The bank is still not convicted that cryptocurrencies offer a real alternative to traditional money but they appear to see the value in opting for digital money.For example, the central banks of China, Turkey, Sweden, and other countries are working on developing their CBDCs and the Australian Reserve Bank revealed that it will also conduct trials and test to see how the CBDC might affect modern payment settlement systems. The recent reports show that the bank has a goal to stimulate the role and the impact of the central bank digital currency by creating a system that will allow the financial institutions to settle the customer payments. The bank wanted to see how the CBDC will perform when given to commercial banks as well.The banks will be able to exchange tokens and to settle various obligations and redeem them through the central bank, and if the system functions well, it could secure the role of the banks in the cashless society. The banks are still unconvinced that there’s a real need for the use of these crypto-assets but if they are going to be used, they will bring a lot of advantages because they will mainly reduce the cost of the payments and improve their speed.  The financial institutions now are required to exchange instructions with each other all of the time which consumes a lot of time and increases the cost. Going with CBDC will make the transaction time faster but it will also mean that these systems will execute all parts or none of them.
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Gemini Launches An Insurance Company To Cover Up For $200M Of Its Branch

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The Winklevoss' brothers Gemini has launched an insurance company which will cover up for up to $200 million for Gemini Custody which is reportedly the largest amount for any crypto custody service in the world. As Gemini launches an insurance company, the head of risk at the exchange named Yusuf Hussain shared the news and said that the captive insurance company is called Nakamoto, Ltd. and will secure the custodial business of the exchange for up to $200 million.Aiding Nakamoto Ltd. and its launch, there have been a lot of traditional insurance brokers joining this new journey. Aon and Marsh were among them - and the custodial clients of Gemini will also reportedly be able to purchase additional insurance from Nakamoto Ltd. in order to secure their own holdings beyond the general $200 million.According to Hussain, Gemini launches an insurance company as an advancement in its coverage - allowing the institutional clients to continue to meet their own regulatory requirements. He explained that the move “is consistent with Gemini’s approach of being a security-first, compliance-first, and regulatory friendly exchange and custodian.”As a reminder, Gemini initially launched their custody wing in September, when it was in the crypto news for being one of the most impressive exchanges for custodial services.Meanwhile, insurance is still a major barrier to crypto investment services looking to court more risk-averse traditional financial players. The legendary insurance firm Lloyd's of London has gotten involved, securing hot wallet holdings for Coinbase and the Kingdom Trust custody business.As Gemini launches an insurance company, we can definitely relate to the exchange's history with advancing insurance into crypto investments - and specifically the 2018 move to insure hot wallet holdings as further evidence of their desire to provide more security in the industry.
“Obtaining meaningful insurance in the crypto industry remains a challenge, and our captive will help to increase our insurance capacity and move the industry forward," the president of Gemini Cameron Winklevoss added.
In the end, Gemini is not the first to launch an insurance option. Before this, Ledger Vault which is the custody arm of the hardware manufacturer Ledger did the same and acquired a crime insurance policy which supports them with a coverage of up to $150 million in crime losses.
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