Deutsche Bank, which is the biggest bank in Germany with $1.34 trillion of assets as of 2018, released a report called Imagine 2030 which detailed how cryptocurrency could begin replacing fiat currency in the 2020s.
In the report, Deutsche Bank analyst Jim Reid says “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.”
Reid may be referencing how Central Banks have had to inject trillions of dollars of printed money into corporations and banks since the 2008 Great Recession in order to prop up the stock market and the economy, leading to fiat currency weakness, and general weakness in the real economy as discussed in a previous CryptoIQ article. There could possibly be a tipping point where major fiat currencies begin to hyperinflate, at which point the masses could turn to cryptocurrency.
Reid goes on to say that cryptocurrency adoption will likely come about via partnerships with card providers and mobile payment apps. Further, countries launching national cryptocurrencies, perhaps in China and the European Union, will advance general crypto adoption.
Finally, Reid describes how the general transition to a cashless society, spurred by governments trying to get large bank notes out of circulation to limit crime, and card providers finding ways to foster micropayment technology, will make it easy for mainstream crypto adoption to happen when the time is right.
This report from Deutsche Bank is of course merely speculation. Crypto becoming the primary global currency is a possibility, although there is no way to know exactly how it will happen.