Bitcoin and Cryptocurrency Could Replace Cash, Says Bombshell Deutsche Bank Report
A new report from Deutsche Bank says cryptocurrencies could transition from being a cash alternative to a full-blown replacement over the next decade.
The report, which attempts to predict future trends in the world of finance, calls cryptocurrency the “21st century cash.”
“Until now, cryptocurrencies have been additions, rather than substitutes, to the global inventory of money. Over the next decade, this may change.
Overcoming regulatory hurdles will broaden their appeal and raise the potential to eventually replace cash.”
The report highlights increasing inflation as a potential catalyst for the rise of alternative forms of money like Bitcoin.
“Eventually, it is possible that inflation will become more and more embedded in our system and doubts will rise about the sustainability of fiat money. The demand for alternative currencies will therefore likely be significantly higher by the time 2030 rolls around.
Will fiat currencies survive the policy dilemma that authorities will experience as they try to balance higher yields with record levels of debt? That’s the multi-trillion dollar (or bitcoin) question for the decade ahead.”
As for the pace of adoption, the report predicts there could be 200 million blockchain wallet users by 2030.
“Assuming governments back cryptocurrencies, and consumers want them, adoption rates will drive the timeline for mainstream use. The chart below shows the adoption rates of blockchain wallets with the equivalent for the internet. It is early days but the curves are similar after adjusting for scale. Indeed, if current trends continue, there could be 200m blockchain wallet users in 2030.”
You can check out the full report here.