Alternative currencies will eventually replace cash by 2030, according to a recent study from Deutsche Bank.
“People’s heightened demand for dematerialized means of payment and anonymity could drive more individuals to digital currencies,” Deutsche Bank strategist Jim Reid wrote in the “Imagine 2030” report.
To gain wider acceptance cryptocurrencies have to become legitimacy in the eyes of regulators, which entails price stability and allows for global reach in the payment market. Creating of alliances with mobile apps and card providers will enable this development.
At the same time, Reid named three key threats to the crypto-based financial system, namely dependence on electricity, cyberattacks and a digital war.
Mobile wallets, digital currencies, peer-to-peer payments – all this put pressure on the consumer, encouraging him to get rid of cash in his pocket, and in some countries this process has already gone very far, it is expected that Turkey, Sweden and China will completely give up physical money in the next decade.
Of course, it’s convenient for governments: automated payments that go through a single system are much easier to track. There are clear advantages in this for private individuals as well: the risk of robbery or loss of money is lower, there is no contact with bacteria that abound in banknotes and coins, and so on.