Will cryptocurrency ever replace cash?

Gone are the days when banks and investors could safely ignore cryptocurrency as a fad or fringe movement. More and more funds, companies invest into startups focused on cryptocurrency and blockchain technologies.

As more people and companies get involved in cryptocurrency sphere, we face with a question: can cryptocurrencies replace cash or even fiat? Let’s find it out.

Cryptocurrencies VS cash

It is not a secret that in recent years, more and more people prefer using credit cards as their sole payment method. While cash usage has been decreasing recently, it is still far from being totally replaced with cashless payments, and cryptocurrencies aren’t an exception.

Experts believe that fiat money will be around for a long time, while a gradual adoption of cryptocurrencies can have a positive potential. They would not disrupt the existing global financial system, but cryptos can rebalance global economic power.

Experts predictions regarding the future of cryptocurrencies

Let’s take a look at “Imagine 2030” research report, produced by Deutsche Bank. According to the report, cryptocurrencies may have been “additions” rather than “substitutes” in financial industry thus far. But the upcoming decade can change this situation as regulatory and legal hurdles will be overcome.

Ripple’s chief executive, Brad Garlinghouse also shared his opinion on Twitter. He explained why cryptocurrencies would not disrupt the existing global financial industry:
“I agree that crypto isn’t likely to replace fiat currencies. I have been very vocal that crypto isn’t likely to disrupt the US dollar and other G20 currencies in my lifetime”.

In conclusion

Digital currencies are still at the very early stages of mass adoption. There will be a lot of experiments with shaping regulation and guidelines. But it’s quite sure that cryptocurrencies will be a strong alternative for companies and its users. Digital assets offer higher security, transaction speed and efficiency over banking transactions.

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