Source: BANKAR | Tuesday, 10.12.2019.| 11:43
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Will digital currencies replace cash?

Illustration (Photo: youtube.com)
By 2030, the demand for alternative currencies will rise, with digital currencies eventually replacing cash, according to recent research from Deutsche Bank.

In the “Imagine 2030” report, Deutsche Bank strategist Jim Reid stipulated that people’s heightened demand for dematerialized means of payment and anonymity could drive more individuals to digital currencies, Cointelegraph writes.

In order to gain wider acceptance, digital assets need to overcome three major hurdles. These include perceived legitimacy in the eyes of governments and regulators, which entails price stability and allows for global reach in the payment market. According to Reid, the establishment of alliances with key stakeholders like mobile apps and card providers will enable this development.

At the same time, Reid pointed out that with mainstream adoption, new challenges will arise. Among major threats to the purported digital currency-based financial system, Reid named dependence on electricity, cyberattacks and a digital war.

Opinions split on digital currencies

In the meantime, world governments have been actively debating the need to develop national digital currencies. Bank of Japan Governor Haruhiko Kuroda has said that there is no public demand for a central bank digital currency (CBDC) in the country. Kuroda noted the increasing demand for cash payments and added that the bank had been conducting technical and legal research into the matter.

The British Virgin Islands has taken a more proactive approach to CBDCs, announcing that the country is developing a digital currency dubbed BVI~LIFE in collaboration with blockchain startup LifeLabs. The currency is part of a broader initiative to grow the local fintech sector. It will be pegged to the U.S. dollar.

Serbian Blockchain Summit 2 was held recently, and more about this can be found in a separate article.
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