German multinational investment bank Deutsche Bank, which previously predicted cryptocurrencies would replace fiat currencies by 2030, now asserts that cash "will be around for a long time" as the preferred payment method.
Deutsche Bank Research Releases 3 Reports on Future Payments
In a recent report titled The Future of Payments, Deutsche Bank Research made initial predictions about cash's longevity. The three-part series includes:
- Cash: The Dinosaur That Will Survive... For Now (Published January 21)
- Toward the Demise of Digital Wallets and Plastic Cards (Published January 23)
- Digital Currencies: The Ultimate Hard Power Tool (Published January 27)
While confident in cash’s near-term dominance, the bank acknowledged cryptocurrencies' growing role in the digital payment revolution:
"Cash is unlikely to disappear soon. However, a true digital payment revolution has unfolded over the past decade. Cash is losing ground as a payment method... Non-sovereign cryptocurrencies pose threats to political and financial stability."
Over 50% in Developed Nations Believe Cash Is Here to Stay
Key findings from Deutsche Bank’s survey:
- 1/3 of respondents in developed countries prefer cash.
- Over 50% believe cash will always exist.
- Germany leads developed economies in cash usage, with an average holding of €52 (~$57).
👉 Why cash remains resilient in digital economies
China and India Push for Digital Currency Adoption
The report highlights how cash’s future hinges on developments in:
- China: Accelerated blockchain adoption since late 2019.
- India: Securities regulators exploring blockchain’s potential (January 23).
Deutsche Bank warned that China’s central bank digital currency (CBDC) could challenge the US dollar’s dominance:
"If companies operating in China are compelled to adopt the digital yuan, it would undermine the dollar’s supremacy in global markets."
Deutsche Bank’s Blockchain Initiatives
In September 2019, Deutsche Bank joined J.P. Morgan’s Interbank Information Network to streamline cross-border payments using blockchain.
FAQs
Q: Will cryptocurrencies replace cash by 2030?
A: Deutsche Bank revised its earlier prediction, stating cash will remain dominant for the foreseeable future.
Q: Which countries are leading in digital currency adoption?
A: China and India are actively promoting state-backed digital currencies and blockchain solutions.
Q: How does cash usage vary globally?
A: Germany shows the highest cash retention (52€ avg.), while others shift toward digital payments.
👉 Explore the future of digital payments
Disclaimer: This content is for informational purposes only and does not constitute financial advice.