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Deutsche Bank: Digital Currencies Will Receive Widespread Adoption in a Few Years

28 January 2020 14:07, UTC
Deutsche Bank: Digital Currencies Will Receive Widespread Adoption in a Few Years
By Ian Marchewski

Existing for just over a decade, digital currencies have already managed to prove that they have every chance to "radically change payments, banking, central banking and the balance of economic power" in the near future. This opinion was expressed in a report released by Deutsche Bank this Monday.

According to the report, the digital currency may become major in the next two years, and this is primarily due to China's expected launch of the 

digital renminbi and, of course, the Libra project, which is controlled by Facebook. Implementation of these two projects can instantly make digital currencies available to more than 1.5 billion Chinese citizens and 2.5 billion Facebook users, and this, in total, is more than half of the world's population.

The authors of the report compare the current level of digital currencies’ adoption with the first years of the Internet. And if a parallel with the tempos of the World Wide Web conquering the world appears to be true, then we can expect to see more than 200 million blockchain wallets by 2030, whereas, today there are about 50 million.

According to researchers, the attractiveness of cryptocurrencies will continue to grow due to their ability to combine the convenience of electronic payments with the confidentiality of cash. If the central bank digital currencies 

(CBDCs) become widespread, they can become an effective tool for solving systemic problems in the global economy. Thus, the authors of the report propose to "resolve many problems caused by the current fractional reserve banking system" by providing citizens with the opportunity to make interest-bearing deposits in state cryptocurrencies. Commercial banks, including large ones, will also benefit from this innovation. They will become less vulnerable, and governments will no longer have to deal with their mass salvation, as was the case in 2008.

Image courtesy of: CCN



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