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Whether digital currencies supplant traditional money

FXcoins - Whether digital currencies supplant traditional money

Yesterday Deutsche Bank released data of a study in which researchers analyzed public demand for electronic payment systems. Also important were a number of identified challenges that will face the industry in the process of social adaptation.

 

The study showed that digital currency will replace Fiat money, by 2030, one of the engines would be for this increased level of inflation. Scientists point out - “if one of the GAFA companies (Google, Apple, Facebook, Amazon) or their Chinese counterparts BATX (Baidu, Alibaba, Tencent, Xiaomi), for example, overcome regulatory barriers - this will increase the attractiveness of the cryptocurrency, will cause them to spread and give them the opportunity to ultimately replace cash”.

 

The report author Jim Reid focuses on the fact that the introduction of cryptocurrencies in daily life will encounter a number of problems, one of them is the legalization of digital money by the government. Ryde believes that the problem can be easily solved, if the payment cryptoprocta will enter into partnerships with large-scale campaigns, after which digital currency will be released in mass market. Guide for the implementation of digital assets will be a mobile app.

 

Further, the RAID indicates that “nearly two-thirds of consumers prefer digital payments, cash payments, and a third concerned with anonymity. That's two things cryptocurrency best combine”.

 

Another important obstacle to the spread of digital currencies is the dependence of industry on electricity. The more digital money - the greater the need for mining. Given the fact that there are some underdeveloped countries where electricity is a luxury development of digital assets will be significantly slowed.

 

Despite demineralizovannoj and anonymity of digital currencies, one of the major drawbacks is their vulnerability to cyber attacks. Reid says that while cryptocurrencies are a threat to the financial system, governments will not consider legalization at all.

 

The reason for a categorical rejection of the use tablconv in the European Union is the inability to control, identify and resolve all legal and Supervisory risks associated with trafficking.

 

Member of the management Board of the European Central Bank Benoit coeure also spoke about the replacement of Fiat money for digital assets. In his speech he talked about the fact that cash is losing customers, and, further, he pointed out that the solution to the problem will be the launch of the EU single digital system, which is scheduled for the end of 2021.

09 December 2019

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