Will the Cryptocurrencies Boom Kill Fiat by 2030?

Could the 2020s be the decade in which the cryptocurrencies boom goes truly mainstream? This is part of a new prediction made by a Deutsche Bank analyst who thinks that exciting times may be ahead for digital money.

Could the cryptocurrencies boom be fatal for fiat?

FIAT-Geld und Bitcoins” (CC BY 2.0) by wuestenigel

What Does the Prediction Suggest?

Strategist Jim Reid has produced a research paper called “Imagine 2030”. In it, he suggests that digital money will enjoy a period of great success in the 2020s. In fact, he goes further and suggests that cryptocurrencies could eventually replace fiat money. The year he gives for this potentially happening is 2030.

This outcome is partly based on the various challenges that fiat currencies have encountered in recent years. He says that the forces behind this traditional system “could unravel” in the 2020s.Another factor is that people now want cashless payments and anonymity. Both of this benefits are offered by digital coins like Bitcoin (BTC) and Ripple (XRP).

In his paper, Reid lists a few of the main obstacles that cryptos face in the future. These include gaining government approval, achieving price stability and obtaining global payments reach.He suggests that joining key stakeholders such as card providers and mobile app developers will help to make this to happen.

Even so, further threats to the cryptocurrencies boom remain. These include cyber attacks, the risk of a digital war and electricity needs.

Will This Come True?

At the moment, various countries around the planet are making clear their positions on digital money. For instance, Germany has imposed strict regulations. Meanwhile, Japan has now approved over 20 exchanges that have licenses to operate in the country. Perhaps the key factor is in terms of which countries and banks are going to introduce their own digital currencies. This could be the breakthrough that makes fiat money less attractive for millions of people.

In this respect, the Bank of France has recently announced that it plans to test its own cryptocurrency next year. There have been suggestions that a number of other countries could soon do the same. JPMorgan has launched its own JPM coin too. Other leading banks are looking at the use of digital assets to make transfers between branches and customers easier.

Summary

The next few years are crucial to the future of the cryptocurrencies boom. If enough countries make them legal and regulate them then more people should start to use them.

If some countries go a step further and produce digital versions of their fiat money then the crypto revolution will become more powerful. With people in many countries now comfortable with cashless payments, this could be a sign that physical fiat money is on the way out, as predicted.