Fun

Deutsche Bank Strategist Predicts Crypto Could Replace Fiat Money

News Feed - 2019-12-09 12:12:13

Deutsche Bank Strategist Predicts Crypto Could Replace Fiat Money


Deutsche Bank analysts have made some predictions regarding the future of cryptocurrency. Strategist Jim Reid explained why cryptocurrencies are inevitable and how the existing fiat money system could crumble over the next decade, leading to soaring demand for cryptocurrencies.


Also read: Swiss Licensed Crypto Bank Expanding Into 9 Markets ‘The End of Fiat Money?’ – Cryptocurrencies Are Inevitable


Deutsche Bank Research released a special edition of Konzept entitled “Imagine 2030” on Thursday. Konzept is a regularly published research report that addresses the fundamental issues driving the world of economics and finance. In the 84-page special edition, Deutsche Bank analysts discussed contrarian ideas of how the 2020s may evolve.


Jim Reid, Global Head of Fundamental Credit, Strategy and Thematic Research at Deutsche Bank, wrote in the report: “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.” He authored the section of the report entitled “The end of fiat money?” Reid detailed: 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 crypto could soar.


Cryptocurrencies Could Replace Cash


One of the sections of the report discusses cryptocurrencies as “the 21st century cash.” Marion Laboure authored this section, with contribution from Anthony Chaimowitz, Market Research Lead for the EMEA and APAC regions at the bank. “Until now, cryptocurrencies have been additions, rather than substitutes, to the global inventory of money,” Laboure explained, asserting that “Over the next decade, this may change.” She elaborated: Overcoming regulatory hurdles will broaden their appeal and raise the potential to eventually replace cash.


Laboure provided a comparison between the adoption rates of cryptocurrencies and the internet by examining the number of Blockchain wallet users and the number of internet users over multiple years. “It is early days but the curves are similar after adjusting for scale,” she claims. “Indeed, if current trends continue, there could be 200m blockchain wallet users in 2030.”



To achieve widespread adoption, Laboure believes that cryptocurrencies must become legitimate in the eyes of governments and regulators. They must also “allow for global reach in the payment market.” Furthermore, “To do this, alliances must be forged with key stakeholders – mobile apps such as Apple Pay, Google Pay, card providers such as Visa and Mastercard, and retailers, such as Amazon and Walmart,” she opined. “If these challenges can be overcome, the eventual future of cash is at risk.” Laboure continued: As we look to the decade ahead, it would not be surprising if a new and mainstream cryptocurrency were to unexpectedly emerge.


“Cryptocurrencies may constitute the best tool for a digital war,” she added, pointing out that some countries with historically-strong banking industries are already trialing them. “The question is which country will take advantage of being the first to obtain licenses and build alliances. As that occurs, the line between cryptocurrencies, financial institutions, and public and private sectors may become blurred,” she concluded.


What do you think of this Deutsche Bank report and the analysts’ view on cryptocurrency? Do you think crypto will soon replace fiat money? Let us know in the comments section below.


Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Images credits: Shutterstock and Deutsche Bank.


Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. Share this story: Tags in this story banks, Bullish, crypto, Cryptocurrency, Deutsche Bank, Digital Asset, Digital Currency, Fiat, forecast, Germany, prediction, Research, Virtual Currency Related The Crypto Anarchist Manifesto FEATURED | Bitcoin.com


A specter is haunting the modern world, the specter of crypto anarchy. Computer technology is on the verge of providing… read more. Venture Capitalists Have Invested Over $200M in Stablecoins FEATURED | Kai Sedgwick


Does the world need more stablecoins? Yes according to VCs, who have thrown hundreds of millions of dollars at projects… read more. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Please enable JavaScript to view the comments powered by Disqus.

News Feed

Nepal Prepares to Issue Digital Currency, Drafts Necessary Amendments
Nepal Prepares to Issue Digital Currency, Drafts Necessary Amendments A task force in Nepal has proposed legal changes allowing the country’s central bank to issue its own d
Despite the Low Price, Bitcoin’s Hashrate Remains Elevated as Difficulty Taps an All-Time High
Despite the Low Price, Bitcoin"s Hashrate Remains Elevated as Difficulty Taps an All-Time High Amid the Terra blockchain meltdown, Bitcoin’s hashrate has been well above the
Ezra Reguerra20 hours agoBreaking down the ongoing token impersonation scams with DeFi execsTres Finance co-founder Tal Zackon warned businesses not to use explorers when tracking their finances.4111 Total viewsListen to
New Coinbase Pro Mobile App Caters to Crypto Power Users
Coinbase is building a new mobile app for clients of its professional trading platform. The U.S.-based crypto exchange announced the new product Thursday, claiming the app would pro
Ethereum Holds Strong For Over A Year: Monthly Close Below This Level Could Be Catastrophic
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
No Bitcoin ETF for Europe, but EU still leads in diversified crypto investments
Veronika Rinecker11 hours agoNo Bitcoin ETF for Europe, but EU still leads in diversified crypto investmentsThe SEC has already approved several spot Bitcoin ETFs in the U.S.; however, these ETFs are not allowed in the E
Rwandan central bank proceeds with ambitious retail CBDC project
Derek Andersen2 hours agoRwandan central bank proceeds with ambitious retail CBDC projectThe African country is eyeing a tokenized retail CBDC with offline transfer capabilities as it heads toward a cashless economy.1050
Google Forms Web3 Team — Sees Tremendous Potential, Demand for Crypto Tech Support
Google Forms Web3 Team — Sees Tremendous Potential, Demand for Crypto Tech Support Google is establishing a Web3 team within its cloud unit, noting that “it is a market th
Billionaire Stan Druckenmiller Discusses Cryptocurrency Having ‘Big Role in a Renaissance’ — ‘People Aren’t Going to Trust Central Banks’
Billionaire Stan Druckenmiller Discusses Cryptocurrency Having "Big Role in a Renaissance" — "People Aren"t Going to Trust Central Banks" Renowned billionaire hedge fund manager
Ethereum Make-Or-Break Moment: This Key Level Determines Path To Reach $7,000
Este artículo también está disponible en español. Despite Ethereum (ETH) recently losing the critical $3,000 threshold due to broader cryptocurrency market corrections in
Major Korean Exchanges Secure Real-Name Account Arrangements With Local Banks
Major Korean Exchanges Secure Real-Name Account Arrangements With Local Banks Leading cryptocurrency exchanges in South Korea have reached agreements with Korean banks to maintain
Bluezelle is Resisting Censorship with a New Developer Grant: Interview with Neeraj Muraka
Bluezelle is Resisting Censorship with a New Developer Grant: Interview with Neeraj Muraka Online censorship has taken front and center since the sweeping ban of