A new very interesting report is viral in the latest cryptocurrencies news, coming from Deutsche Bank and stating that cryptocurrency has a potential to replace fiat currencies by 2030.
Named “Imagine 2030,” this report features a Deutsche Bank strategist named Jim Reid who raised awareness of the challenges that the existing fiat system has encountered in the recent years. These especially varied with the emergence of cryptocurrencies.
As Reid stipulated, the heightened demand for dematerialized means of payment and anonymity are what could drive more individuals to cryptocurrencies. The Deutsche bank is confident with this report but noted that in order to gain wider acceptance, cryptocurrencies need to overcome three major hurdles. As the report shows, these include:
- The perceived legitimacy in the eyes of governments and regulators which is what entails price stability. As Reid noted, the establishment of alliances with key stakeholders such as mobile apps and card providers will enable this development,
- New challenges which may arise with mainstream adoption, and
- Major threats to the purported digital currency based financial system, which the Deutsche Bank’s’ Reid said that “is dependant on on electricity, cyberattacks and a digital war.”
“As that occurs, the line between cryptocurrencies, financial institutions, and public and private sectors may become blurred,” Reid wrote.
In the meantime, the Bitcoin news now can let us see that world governments have been actively debating the need to develop national cryptocurrencies. Earlier this week, we saw that the Bank of Japan Governor Haruhiko Kuroda said that there is no public demand for a central bank digital currency (CBDC) in the country. He also noted that there is an increasing demand for cash payments and added that the bank had been conducting technical and legal research in the matter.
Besides the Deutsche Bank, the British Virgin Islands has also taken a more proactive approach to CBDCs, announcing that the country is developing a digital currency dubbed BVI-LIFE in collaboration with the blockchain startup LifeLabs. This currency is part of a broader initiative to grow the local fintech sector – and will be pegged to the US dollar.
Other news showed that the central bank of France also plans to pilot a CBDC for financial institutions in 2020.
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