By 2030, demand for alternative currencies will have increased and digital currencies will eventually replace cash, according to a recent study by Deutsche Bank.
In the "Imagine 2030" report, Deutsche Bank strategist Jim Reid raised awareness of the challenges faced by the existing fiat system in recent years, in particular with the emergence of crypto currencies. Reid said that the increased demand for dematerialised means of payment and anonymity could lead to more people being able to use digital currencies.
In order to gain wider acceptance, digital assets have to overcome three main obstacles. These include perceived legitimacy in the eyes of governments and regulators, which entails price stability and allows for global reach in the payments market. According to Reid, alliances with key stakeholders, such as mobile application and payment card providers, will enable this development.
At the same time, Reid pointed out that mainstreaming will create new challenges. Among the main threats to the supposedly digital money-based financial system, Reid mentioned electricity dependence, cyber-attacks and digital warfare.
