Cryptocurrencies will not replace cash, not in our lifetime - Deutsche Bank
|- Deutsche Bank prepared a report on the future of money.
- The cryptocurrencies have potential, but they won't replace cash.
While cash usage has been decreasing recently, it is still far from being totally replaced with cashless payments with digital currencies, according to the latest report prepared by Deutsche Bank. The experts believe that the cash will be around for a long time, while a gradual adoption of digital currencies will have the potential to rebalance global economic power.
In this report, we argue that cash is unlikely to disappear anytime soon. However, a real digital payment revolution has been underway for the past ten years. Cash is losing ground as a payment method. Several countries have recently removed large notes worth $100 or more and implemented policies to replace traditional payment methods with digital solutions. In the midst of these changes, non-sovereign cryptocurrencies pose a threat to political and financial stability.
More importantly, the researchers write that cryptocurrencies are still at the very early stages of adoption, which means there will be a lot of experimentation with the new type of asset before it is finally shaped. While some stores have started accepting digital money, they are but few and most online platforms.
Payments in Bitcoin and other digital assets have grown in recent years, though they still represent only a tiny share of global payments, where cash is still a king.
According to the Deutsche Bank survey, a third of people in developed countries prefer to pay in cash and more than half don't believe that cash will ever become obsolete. However, cryptocurrencies have a huge potential, the Bank's experts admit.
Some believe cryptocurrencies should be considered an asset class, akin to gold. Perhaps, but cryptocurrencies are also a revolutionary new technology that can change the way we interact with payments. Looking ahead, it may not be surprising if a new and mainstream cryptocurrency were to unexpectedly emerge.
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