Deutsche Bank is a global investment and financial banking giant that has been in the industry for a very long time. They recently released their Imagine 2030 report that includes the predictions of top officials in the bank regarding the ‘decade ahead,’ mostly in the area of cryptocurrencies and their mass adoption.
The Imagine 2030 Report
The report indicates that, to date, cryptocurrencies have not been successful in taking off as a payment means, despite the many known benefits of this, which include speed, security, easy storage, relevance within the digital era, and low transaction fees. The report then goes on to address how this can be changed and improved as cryptos overcome regulatory obstacles. This includes governments, card providers, banks, and cryptocurrency advocates who are all driven by the common goal, which is eliminating cash.
The Imagine 2030 report states that, so far, cryptocurrencies have simply been ‘additions’ in the money inventory globally, as opposed to the substitute of money. However, according to Deutsche Bank, there is a chance for this to change in the near future, especially by overcoming the regulatory hurdles which will make digital assets more appealing to the masses. The end result is that cryptos could go one to simply replace cash.
The report by Deutsche Bank further explains that there are vital influencing factors that will act as a roadmap to this change, and the core players include China and India. The reason for this is that both these countries have exceptionally large populations so the actions taken by the Indian and Chinese governments in implementing cryptocurrencies, will have a big impact on the industry as a whole. The report predicts that based on the current usage and adoption rate, by 2030, they expect to see 200 million blockchain users globally.
The report further discusses three top hurdles that the cryptocurrency market must overcome for it to continue growing and to increase adoption across the globe.
Hurdles in the Market
The first hurdle is to make cryptocurrencies legitimate in the eyes of the regulators and governments. This means that these digital assets must be viewed as a legit sector. If this happens, this will then help to overcome the second hurdle, which is stabilizing the prices of cryptos, which will provide advantages to both consumers and merchants.
The third hurdle, according to the report, is to expand the global reach within the global market. This means that key stakeholders must be brought on board to forge alliances and this includes top players in the industry who can open the doors to create a powerful cryptocurrency payment method in the market. Some of the key stakeholders in this include Visa and Mastercard card providers, mobile apps such as Google Pay and Apple Pay, and retailers, such as Walmart and Amazon.
At the same time, the report from Deutsche Bank also admits that all the above factors will also open up a new challenge in the market. A strong financial system will be needed that is not prone to cyberattacks, digital security worries, and electricity consumption.
The Deutsche Bank report clearly outlines the current market trends where cryptos are really struggling to see huge adoption, by attempting to sidestep banks and governments in order to initiate a monetary revolution. However, it is clear that coins that work by involving other parties and integrations, tend to gain mainstream adoption and acceptance much faster, while at the same time, they face less resistance. According to the bank, the long-term goal, once mass adoption is achieved, and the public has a better understanding of the technology, a clear distinction between centralized and decentralized options can then be clearly highlighted and clearly understood.