Deutsche Bank Research: Cryptocurrency Will Ride the Wind of Change
- As emerging economies and big companies are both embracing crypto, it is only a matter of time before a mainstream one appears.
- The amount of blockchain wallet holders would increase to 200 million if the tendencies continue.
Deutsche Bank headquarters in Frankfurt, Germany. Financial Times
When we talk about the current state of the financial world cryptocurrencies are still ‘additions to’ instead of ‘substitutes for’ traditional assets. However, according to Deutsche Bank AG’s research division, this might change very soon.
The Frankfurt-based bank released a report titled “Imagine 2030” as part of the Konzept series, which raises doubts on the viability of fiat money. Over the next decade inflation would be getting “more and more embedded in our system” which increases the issue of how sustainable money as we know it will be.
As part of the report, analyst Jim Reid wrote:
“The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s. If so, that will start to lead to a backlash against fiat money and demand for alternative currencies, such as gold or [cryptocurrency] could soar.”
‘Mainsteam’ cryptocurrency?
An intriguing guess by Deutsche Bank analysts is that during the next decade, the existing market could be heavily disturbed by a new kind of ‘mainstream’ cryptocurrency.
The report does note the fact that the biggest emerging economies – China and India did pass blanket bans on trading with cryptocurrency. Still, both countries’ governments are busy with launching their own cryptocurrencies.
Such huge countries boosting and encouraging the use of their cryptocurrencies will surely increase the users of digital assets by a lot. According to the report, if the current trends continue, the global number of blockchain wallet users would reach 200 million by 2030.
Deutsche Bank believes that “the line between cryptocurrencies, financial institutions, and public & private sectors may become blurred,” during the next decade, which is something that is heavily discussed already.
As an increasing number of mainstream firms are now able to advance through the tough regulatory complications, Deutsche Bank expects that mass adoption of cryptocurrency will be led by the four big tech companies – Alphabet, Amazon, Apple and Facebook.
- Germany’s largest bank will use Taurus’ custody and tokenization technology to manage the cryptocurrencies, tokenized assets, and digital assets of its clients.
- Deutsche Bank was one of a few companies to participate in Taurus’ $65 million Series B fundraising round back in February, which was led by Credit Suisse.
Deutsche Bank headquarters in Beijing, China on April 3, 2019. Shutterstock
- SlowMist researchers have found that all tokens stolen in the $625 million Ronin bridge exploit have already been transferred to the Bitcoin network.
- The hacking group, which is believed to be North Korea-sponsored Lazarus Group, used a number of crypto mixing services and privacy tools to hide their identities.
- The Reserve Bank of Australia will collaborate with DFCRC, a $180 million research program, to explore use cases and potential benefits of CBDC in Australia.
- The research project will also feature a “limited-scale” CBDC pilot, which will operate in a ring-fenced environment.