Deutsche Bank believes that cryptocurrencies could replace the legal currency by 2030

Deutsche Bank believes cryptocurrencies could replace legal tender by 2030 - Cryptocurrency Exchange Binance Deutsche Bank

Deutsche Bank believes that cryptocurrencies could replace the legal currency by 2030 and meanwhile, the "forces that hold the monetary system together with the legal currency" are beginning to fall apart.

The bomb was launched in a report last Thursday by Deutsche Bank (149 years of activity), which is the largest in Germany, and comes a week after the news that Germany will likely allow financial institutions to manage cryptocurrencies as early as next year. .

Deutsche Bank's "Imagine 2030" report offers 24 "contrary ideas" that could occur in the next decade globally, from the adoption of a six-hour working day to the most innovative "on demand" life according to which a refrigerator would perceive autonomously a shortage of milk and would order a new batch.

The fall of the legal tender

The report mentions what many might think (for a bank) as unmentionable - the potential disappearance of the legal currency (Fiat currency).

Deutsche Bank analyst Jim Reid claims that legal money has been the subject of some sort of arcane experiment since the decoupling of the dollar from gold in 1971, stabilized not through the management of central banks as they would have you believe, but through events more random as China's entry into the global job offer. Reid writes:

"The fact that this current legal tender system has survived for so long has required a fortuitous set of global forces over the course of several decades that have created significant natural-compensated disinflationary forces."

But central banks may lose their grip. According to Reid, aging populations are likely to lead to higher labor costs worldwide, which in turn could skyrocket inflation rates far beyond the realm of state-level control.

In this seemingly catastrophic scenario, the "multi-trillion dollar (or Bitcoin)" question, he says, is whether or not legal tender can compete with alternatives such as cryptocurrency and gold as the vital medium of currency.

“The forces that held the current Fiat system together seem fragile and could be revealed in the 20s. In this case, this will begin to provoke a backlash against the legal currency and the demand for alternative currencies, such as gold or cryptocurrencies, could increase ”.

Crypto: "the cash of the 21st century"

Deutsche Bank's report will surely claim the wider cryptocurrency community in its 21-year vision of an alternative monetary system, but despite its flattering description of the crypto as "XNUMXst century cash", the bank has taken a staggering view of the propositions of fundamental value of the cryptocurrency.

Deutsche Bank highlighted cryptocurrency benefits such as "security, speed, minimal transaction fees, ease of storage and relevance in the digital age" - many of which have been historical critical points for Bitcoin, Ethereum and other major cryptocurrencies - while not mentioning some fundamental principles such as the scarcity of offer and the systemic transparency allowed by the blockchain.

Despite this, the report seems to cast a very interesting look at the future, even if, being a bank, we are sure that the current scenario will also change cryptocurrencies a lot. What do you think about it? Write it in the comments below.