Deutsche Bank has taken out a new trend report, Imagine 2030, which states that the current fiat system might be replaced by digital currencies such as Bitcoin by the 2030s. The report was compiled by Jim Reid, the Chief Analyst at Deutsche bank.

According to Reid’s report, the global rising inflation combined with the doubts on governments’ power to mint money without anything backing it will cause the current financial system to crash.

“Eventually, it is possible that inflation will become more and more embedded in our system and doubts will rise about the sustainability of fiat money. The demand for alternative currencies will therefore likely be significantly higher by the time 2030 rolls around. Will fiat currencies survive the policy dilemma that authorities will experience as they try to balance higher yields with record levels of debt? That’s the multi-trillion dollar (or bitcoin) question for the decade ahead”, Reid notes in his report.

Reid also notes that the current fiat policy looks fragile and can possibly collapse in the next decade. This would lead to alternative currencies such as gold and cryptocurrencies to soar.

“The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s. If so, that will start to lead to a backlash against fiat money and demand for alternative currencies, such as gold or crypto could soar.”

Challenges for Mainstream Adoption

Reid states that the path required for the mass adoption of cryptos is hard and the industry needs to overcome three major hurdles, which includes,

Legitimacy in the eyes of the government & regulators Stability in the price Partnerships and key alliances with payment apps such as Apple Pay, Google Pay, Visa, etc.

Reid also mentions that Cryptocurrencies biggest threats are its dependance on electricity. Cyber attacks and a digital war also poses a threat to digital currencies.

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