Cryptocurrencies have a significant impact on banking services. If you are not willing to incorporate blockchain services into your system, it will be difficult to adjust in the future market. According to many analysts, the future is cryptocurrency. The decentralization system is likely to accelerate in the coming years. The system will change from fiat to digital currency. Currently, one of the most valuable assets is Bitcoin, the first cryptocurrency.
The banking system is the most important area of concern for the decentralization of the entire financial system. After a massive hike in the crypto market in 2017, attention was drawn from global platforms. Not only investors or traders, but also regulators and central agencies have begun to look into the blockchain ecosystem. It is entirely up to the country whether it wants to implement the program or to accept the current one. 2017 is the year when almost every business sector has begun to believe in the blockchain system.
While some countries, such as China, prohibited the use of cryptocurrencies and introduced multiple laws only to ban the use of cryptocurrencies in 2017, some counties approved cryptocurrencies. When the use of cryptocurrencies is proliferating, banks start investigating the method. Deutsche Bank was one of the first organizations willing to participate in the blockchain economy.
After October 2019, China said that it would accept digital currencies as part of its government system and willing to back up its digital asset. Impact of the comment was so strong that it raised the bitcoin price almost $10,000. This changes all of the world’s view on how to handle blockchain-based cryptocurrencies.
Deutsch Bank’s new statement released by the chief suggesting mass adoption before 2030 and cryptocurrencies will replace the fiat system. The economist at Deutsch Bank, Jim Reid, commented on cryptocurrency that cryptocurrency could become an alternative trading medium. He also praises the innovative blockchain technology and how it is transforming the financial sector ecosystem around.
He said, “Cryptocurrencies are all the rage at the moment and are as much about blockchain as anything else but there could be an increasing desire for alternative medians of exchanges in the years to come if we are correct.”
Deutsch Bank illustrated the full road map of the payment system with the diagram. According to data provided by statista, 535.2 billion people use mobile payment methods. Here is a beautifully designed road map of the payment system from the Stone Age to the modern age.
For the future prediction of the blockchain system, Deutsch Bank has released a study and forecast report on the details of the development of the financial system. The title, itself a representation of what’s inside the study, “Imagine 2030.” When it asks, what do you think of first? It obviously depends on the perspective of the people. Many will think about family, home, car, world tour, many will think about business growth, some job growth, some will think about global warming issues as well. Perhaps the key insight for a popular people’s financial system is to see how the environment changes.
The transformation of financial instruments into a blockchain-based platform will not end. Rather, the new stable coin will evolve and the security tokens will be introduced to the system. According to the Deutsch Bank’s study, cryptocurrencies are faster for entry into the system and, by the end of 2020, cryptocurrencies increasing replace the current fiat system.
The chief economist Jim also encoded the fact, “The end of fiat money?” In that report for 2030’s prediction, he said, “The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s. If so, that will start to lead to a backlash against fiat money and demand for alternative currencies such as gold or crypto could soar.”
Another respectful person in the back Marion Laboure encoded the 21st-century cash system in the journey. She said, “Until now, cryptocurrencies have been additions, rather than substitutes, to the global inventory of money over the next decade, this may change” She explained it very clear that the financial system is changing. It will continue and it is a matter of a few years while it will be adopted worldwide.
While one of the largest financial institutions in the world predicts the evolution of the financial system, no one can overlook that. And some recent activities, such as Libra, China, Bakkt and many more, are accelerating the process of mass adoption of cryptocurrencies. This big mass adoption will continue to expand over the next decade, and who knows that the German Bank’s prediction will be true. The truth is that the rapid movement of cryptocurrencies and the process of legalization operating on them play a key role in the future. Now, we’re all accustomed to the cashless payment system, and soon we’ll all be using cryptocurrencies for payment.