According to the results of the analysis of growth and implementation of cryptocurrencies by Deutsche Bank specialists, the bank’s expert on strategy shared his opinion on how he sees the near future of finance, namely the next 10 years. He believes that when cryptocurrencies become legitimate in many countries, fiat money will not compete with digital currency and lose a significant part of its value, and then crypto could replace fiat money. Cryptocurrencies, in turn, will experience an unprecedented rise in value due to a sharp jump in demand for them.
The cryptocurrency market is developing every year faster and covers more and more areas of its application as a means of payment, as well as an investment tool. The creators of cryptocurrencies still have a lot of work to integrate with various payment and mobile services and then crypto could replace fiat money. The largest players in mass markets, retailers and payment markets should be involved in the development of full cryptocurrency coverage of all the monetary functions that fiat money now has.
At the same time, many large banking institutions are already engaged in the development and implementation of systems based on blockchain technology to ensure the security of digital transactions. Crypto could replace fiat money while them are not subject to control, they more represent private interests, but with the development of integration and the legislative framework in many countries, digital currencies may get a different meaning.
Cryptocurrencies with their appearance, of course, have gradually changed the financial world, but even now they are still just an addition to ordinary money, financial and investment instruments. While they are not accepted everywhere, and some people do not even know about their existence, although there are already fewer such people.
But according to the forecasts of Deutschebank experts, this state of affairs will change and over the next decade, cryptocurrency reaching a new level and so crypto could replace fiat money. According to the research, the growth in the use of cryptocurrencies is ahead of the growth in the development of the Internet, which ultimately will lead to an increase in the number of active users of cryptocurrencies and, as a result, to the described consequences of replacing fiat ones.
As experts predicted on the basis of the study, the global adoption of cryptocurrencies to replace ordinary money will happen sooner or later. Trends in the development of technology and human society as a whole indicate that this is inevitable in the end.
The study report and the forecast for changes in the monetary system of the near future were published in a special edition of Konzept Deutschebank, which regularly conducts research on fundamental issues of the global economy. Of course, there is no unambiguous clear and unconditional vision about the further development of the world of finance for the next decade, but in general many agree that crypto could replace fiat money as trends show that such forecasts have a right to exist.
The development of technology, which has brought many radical changes in many areas of the global economy, shows that the fiat money system is gradually weakening as its foundation began to stagger. In the next decade, this system will face even more upheaval, which may completely destroy the foundation on which it has stood firmly for many decades. The weakening will cause a sharp drop in demand and, accordingly, the value of fiat money, which is why both institutional and private investors will shift their focus to precious metals and cryptocurrencies itself.
While most states are trying in every possible way to legislatively restrain cryptocurrency expansion, since they cannot regulate it, but this cannot last long, since a revolution in the financial world has already occurred and continues to occur.