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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