Deutsche Bank Research: Crypto to Replace Fiat Currencies by 2030

By 2030, the demand for alternative currencies will rise, with digital currencies eventually replacing cash, according to recent research from Deutsche Bank.In the "Imagine 2030" report, Deutsche Bank strategist Jim Reid raised awareness of the challenges the existing fiat system has encountered in recent years, specifically with the emergence of cryptocurrencies.

Reid stipulated that people's heightened demand for dematerialized means of payment and anonymity could drive more individuals to digital currencies.

Mainstream adoption and co-occurring challengesIn order to gain wider acceptance, digital assets need to overcome three major hurdles.

Among major threats to the purported digital currency-based financial system, Reid named dependence on electricity, cyberattacks and a digital war.

Countries examine CBDCIn the meantime, world governments have been actively debating the need to develop national digital currencies.

Earlier today, Bank of Japan Governor Haruhiko Kuroda said that there is no public demand for a central bank digital currency in the country.

Kuroda noted the increasing demand for cash payments and added that the bank had been conducting technical and legal research into the matter.

The British Virgin Islands has taken a more proactive approach to CBDCs, announcing that the country is developing a digital currency dubbed BVI~LIFE in collaboration with blockchain startup LifeLabs.

The currency is part of a broader initiative to grow the local fintech sector.

The central bank of France plans to pilot a CBDC for financial institutions in 2020.