Deutsche Bank, the German-based banking giant, recently issued a report dubbed “Imagine 2030.” In the report, the bank claims that crypto could potentially replace the fiat system by 2030. It claims that decades of inflation and low labor costs have weakened the existing fiat system of finance.

According to the report, cryptocurrencies have been fringe additions in the fiat system up to now. However, they could become substitutes for the existing system in the future. The bank believes this will occur as regulatory hurdles are overcome.

In the report, it is noted that if one of the four silicon valley giants, which are Google Apple, Facebook, and Amazon, is able to overcome regulatory problems, it would grow interest in the use of crypto. It is worth noting that Facebook is currently lobbying regulators in much of the Western world to allow its project to go ahead. This report notes the same would happen in one of the major tech companies in China such as Tencent, Alibaba, and Xiaomi were to overcome regulatory problems. The result would be the increased appeal of crypto, which could potentially lead to fiat currencies being replaced by crypto.

The Existing System is Weak

The Deutsche Bank report claims that the existing fiat system is weak. It notes that things such as inflation and low labor costs have helped to weaken it. As a result, the report claims that this could lead to an increased appetite for alternatives such as crypto and gold. The various benefits that crypto offers including security, speed, low transaction fee, easy storage, as well as relevance in the digital era could lead to mass adoption in the coming decade.


Another major reason why crypto could prove more attractive is due to the privacy it offers, according to the report. The report notes that about a third of all consumers care about anonymity. As a result, this could be a major driving force in the adoption of crypto.

Inflation is a major issue that could drive the masses to crypto, the report claims. This is especially so in the coming years as authorities try to balance growing yields with huge amounts of debt. In the future, the trillions of dollars’ worth of debt that will have piled could push the masses into crypto.

A Need for Solid Legal Standing

The report notes that for crypto to succeed there is a need to establish a solid legal standing for this nascent sector. This would ensure price stability as well as leading to increased interest by crypto payment firms such as Mastercard and Visa. Besides that, retailers such as Walmart and Amazon would be more accepting of crypto.

An End to Physical Cards

The report also notes that besides physical cash, the next few years could lead to the death of physical cards. This is especially so as smartphones have replaced the use of physical cards amongst millennials. In the next decade, the bank predicts there will be no physical cards. The report concluded by noting that based on current trends, the number of blockchain wallet users could hit 200 million by 2030.

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