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.”
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.