Governments, banks and credit card companies all have the same goal: to ensure that cash disappears from society. That is one of the reasons why Deutsche Bank claims in a report that digital currency will completely replace cash in 2030.
Imagine 2030
This is stated in the report called Imagine 2030, written by Jim Reid. Reid is the head of Fundamental Credit at Deutsche Banks and looks to 2030. What will the world and its economy look like then? He looks at the role of fiat, drones, food, plastic, debt, climate and the influence of China and India. But he also proposes solutions including cryptocurrencies and a six-hour working day.
Digital yet privacy
Reid writes that people are looking for cashless payment methods that also offer a degree of privacy. That is why citizens can opt for cryptocurrencys.
To be more widely accepted, digital resources must overcome three major hurdles.
- Governments, politicians and regulators must take cryptocurrency seriously and justify it.
- The prices must become more stable.
- There must be demand from the global payment market.
The researcher therefore believes that partnerships with major stakeholders such as mobile apps and map providers make these developments possible.
Plenty of challenges
At the same time, Reid pointed out that broad-based adoption brings new challenges. He sees threats and challenges that cannot simply be solved. Consider the dependence on electricity, cyber attacks and a digital war.
“If that happens, the boundary between cryptocurrencys, financial institutions and the public and private sectors can fade,” Reid wrote.
Countries want their own cryptocurrency
The contours of his vision for the future are already taking shape. Almost every government and central bank in the world speaks about national digital currencies. Haruhiko Kuroda of the Bank of Japan said today that there is no demand for a central bank digital currency (CBDC) in the country.
Kuroda does not just suck this out, he says that the bank has carried out technical and legal investigations.
The British Virgin Islands have opted for a more proactive approach to CBDCs. The country is developing a digital currency in collaboration with blockchain start-up LifeLabs.
The central bank of France is planning to experiment with a CBDC for financial institutions in 2020. And there is a German bill that allows German banks to sell and store cryptocurrencys.
Read the current state of the global CBDCs here.
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