Cryptocurrencies can replace Fiat by 2030: Deutsche Bank

The largest financial conglomerate of German Deutsche Bank have conducted a new study. According to the data obtained already by 2030, the demand for alternative currencies will grow, but digital currency will eventually replace Fiat. In the report “Imagine 2030” Deutsche Bank strategist Jim Reid drew attention to the challenges in recent years facing the current financial system — especially since the advent of cryptocurrency. According to him, the increased demand for intangible means of payment and anonymity will continue to encourage people to turn to digital currencies.

The contents

Mass adoption and related issues

To achieve more widespread adoption, digital assets need to overcome three major obstacles.

  • First and foremost, you must gain trust from governments and regulators. This will allow to stabilize prices and provide global coverage of payment market.
  • In addition, it is not enough just to permit to use cryptocurrency and other digital assets. It is important to make sure they were as comfortable as possible. That is, the user should be able to use mobile apps with an intuitive interface.
  • Also among the main threats for supposed financial systems Reid notes the reliance on electricity and cyber attacks.

Read on: the New development of Spanish programmer will seriously simplify sending bitcoins.

How are things in the Bitcoin ecosystem?

According to statistics cryptanalytic online Coin Metrics can be seen that the rate of daily active Bitcoin addresses for all time of existence of cryptocurrencies keeps an upward trend. At least from 2012 to 2018, the line is steadily going up.

Schedule daily active Bitcoin addresses from 2012 to 2018. Source: Coin Metrics

But since then, for nearly two years the growth rate has slowed considerably. For example, here is how the situation has evolved from December 2018 on the same month in 2019.

Schedule daily active Bitcoin addresses from 2018 to 2019. Source: Coin Metrics

The upward movement has almost stopped. Although this can be attributed to a collapse of Bitcoin in the beginning of 2018, it should also be noted that the number of daily active addresses since then almost has not changed for several months.

Schedule daily active Bitcoin addresses from 2009 to 2019 and the price of BTC. Source: Coin Metrics

What does all this mean for investors?

It all depends on the perception of the purpose of Bitcoin. If we consider it as a form of payment as was originally specified in wallpapere Satoshi Nakamoto — the lack of growth in the number of active network members is really worrying. But if BTC is a store of value, according to many supporters, the number of active addresses is not so important. Many convinced users of the cryptocurrency can not trade actively, and it will not affect the value of Bitcoin.

Dorian Nakamoto. Source: Twitter

However, between the number of active address and price of BTC there is definitely a correlation. And regardless of whether Bitcoin a means of payment or store of value, each of us waiting for its value to rise.

What happens at the state level?

Meanwhile, governments worldwide are actively discussing the need for the development of a national digital currency. For example, the Bank of Japan Haruhiko Kuroda said that there is no demand for the digital currency Central Bank (CBDC). He noted the increasing demand for cash payment and added that the Bank constantly conducts research in these areas.

China’s President XI Jinping. Source: Bitcoinist

British virgin Islands took a more active approach to CBDC. Now the country in cooperation with blockchain startup LifeLabs is developing a digital currency called BVI~LIFE. Currency is part of a broader initiative for the development of local FINTECH sector. However, it is worth noting that the currency will be steilcoom tied to the U.S. dollar.

In turn, the Central Bank of France plans to launch a pilot project CBDC for financial institutions in 2020. And as has been mentioned in the media, most likely China the first to launch its digital currency.

By the way, also works against simplifying the user interface. For example, the Spanish developer Jose Femenias of Canola showed the wallet called Easypaysy. The latter's task is to eliminate the human factor when sending bitcoins, that is, to reduce to zero the probability of sending coins to the wrong address. To do this, the program uses special identifiers. We have examined in detail this product in a separate article.

The current rate of coins you can see in the class ranking cryptocurrencies, and in cryptodata of hontarov just a sea of useful information. We also invite you to Yandex Zen.

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