Blockchain, the cryptocurrency race: digital assets will replace fiat currencies in the next 5-10 years
According to a recent annual global blockchain survey from Deloitte & Touche, 76% of finance professionals think digital assets will serve as a solid alternative or a genuine replacement for fiat currencies in the next 5-10 years. The firm surveyed more than 1,000 finance professionals based in Brazil, China, Hong Kong, Japan, Singapore, South Africa, the United Arab Emirates, the United Kingdom and the United States.
Deloitte led blockchain surveys in the past four years, but the 2021 survey is the first to cover businesses aided by blockchain technology. The survey was conducted between March 24 and April 10, the heyday of the cryptocurrency market this year.
81% of respondents agreed that the technology is “extensively scalable and has reached mainstream adoption”. 73% thought their company should adopt blockchain and digital assets and would lose a competitive advantage if they didn’t adopt the technology. 65% of finance professionals consider the existing financial infrastructure to be one of the biggest obstacles to the acceptance of digital assets. 63% believe cybersecurity is another barrier, and 60% have encountered regulatory hurdles. On the other hand, 43% of respondents said their institutions should adopt cryptocurrencies as a payment option.
Speaking of the survey result, Linda Pawczuk, a US leader in blockchain and digital assets at Deloitte, said there has been a shift in how global finance is seeing new business with digital assets and how it is shaping the financial infrastructure. Pawczuk added that the foundations of the banking sector have “basically survived” and that financial executives must find alternative ways to create “economic growth in the future of money”.
But could the future of money really be that of digital currencies? The answer, at least for Julian Sawyer, chief executive of Bitstamp, one of the longest running cryptocurrency exchanges in the world, is not quite yet. “There have been many people who have sat down in the cryptocurrency world who have said, ‘Oh, cryptocurrencies will take over the world and traditional banks and central banks will leave, ‘”he said in a telephone interview from London.
“It won’t happen. While the technology itself can increasingly be used in the plumbing behind the scenes of financial services, such as money sent across borders, Sawyer said Bitcoin is still too volatile to completely replace the dollar, although it can become part of the mix. “Will the dollar still be there? Yes, “he said.” Will there still be Visa and Mastercard? Absolutely. It will just be that we will have alternatives for using plastic, paper, coins or checks. “