The research team at German multinational investment bank and financial services firm Deutsche Bank, has released a report suggesting that there’s a good chance cryptocurrencies will replace fiat currencies in the next ten years. The report claims that this will happen because of all the problems currently being faced by the fiat system available today.
According to the “Imagine 2030” report in a section called “The end of fiat money?” by strategist Jim Reid, fiat money has been kept alive for so long with activity that has now had a detrimental effect on it. Reid writes:
“That this current fiat system has survived so long has required a fortuitous set of global forces across multiple decades that have created sizeable natural offsetting disinflationary forces.”
Reid then says even though there could be problems with strong enough adoption of crypto in the near future, the factors that have been responsible for holding the system in place are slowly getting weak and could very easily give way over the next ten years.
“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.”
It might help that there are now many countries interested in digital currencies including France and India who are both opposed to private cryptos.
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