- Digital assets need to surpass three major hurdles for widespread acceptance.
- Demand for dematerialized means of payment may lead to increased use of digital currencies, claims Deutsche Bank strategist.
According to a recent research by the Deutsche Bank, the demand for alternative currencies will rise by 2030. The bank claims that digital currencies will replace traditional cash in due course. In the “Imagine 2030″ report, strategist Jim Reid of Deutsche Bank expressed concern regarding the challenges faced by the fiat system after the creation of cryptocurrencies.
Reid remarked that the rising demand for dematerialized means of payment and anonymity might push more individuals to use digital currencies. However, digital assets need to surpass three major hurdles for it to be accepted widely. These mainly involve being legitimate in the eyes of regulators and governments. Additionally, digital assets are required to have price stability and allow global reach in the payment market.
Reid suggests that this development will be brought about by collaborating with stakeholders like mobile apps and card providers. Reid also noted that new challenges will arise after it is adopted widely. He stated that the digital currency-based financial system could face problems like dependence on electricity, cyberattacks and a digital war. He wrote:
As that occurs, the line between cryptocurrencies, financial institutions, and public and private sectors may become blurred.
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