Deutsche Bank, the global financial and investment bank giant, has released its Imagine 2030 report where top bank officials attempt to predict the “decade ahead” as the timeline for the mass adoption of cryptocurrencies such as Dash.
The report admits that cryptocurrencies “have not managed to take off as a means of payment despite their well-known benefits, such as security, speed, minimal transaction fees, ease of storage and relevance in the digital era”. However, the report then discusses how this can be changed as cryptocurrencies overcome regulatory hurdles as governments, banks, card providers, and cryptocurrency advocates realize their common goals of eliminating cash:
“Until now, cryptocurrencies have been additions, rather than substitutes, to the global inventory of money. Over the next decade, this may change. Overcoming regulatory hurdles will broaden their appeal and raise the potential to eventually replace cash.”
The Deutsche Bank report also highlights that significant influencing factors will be the roadmap that the Chinese and Indian governments choose to implement since their populations are so large. Nevertheless, the report extrapolates current usage adoption rates and predicts a possible “200m blockchain wallet users in 2030”.
Overcoming key adoption hurdles such as legitimacy perception and partnerships
The Deutsche Bank cryptocurrency report discusses three main hurdles that cryptocurrency has to overcome to see continuing adoption growth. The first is to “become legitimate in the eyes of governments and regulators”, which will come from overcoming the second hurdle of “bringing stability to the price and bringing advantages to both merchants and consumers”. The third hurdle includes “allow[ing] for global reach in the payment market”, which means “alliances must be forged with key stakeholders – mobile apps such as Apple Pay, Google Pay, card providers such as Visa and Mastercard, and retailers, such as Amazon and Walmart.” Nevertheless, the report also admits that these open up new concerns such as “basing a robust financial system entirely on electricity consumption”, cyberattacks, and other digital security concerns.
The Deutsche Bank report supports current market trends that cryptocurrency struggles to see significant adoption when simply attempting to skirt to governments and banks and try to initiate a monetary revolution on its own (i.e. privacy coins that are facing increasing delisting pressure on exchanges). However, coins that focus on integrations and working with different parties tend to see more mainstream acceptance and face less lash back. While cryptocurrency advocates will often point out that some of these solutions are centralized or may compromise the ultimate goal of having non-government backed fiat, it does help the medium term goal of getting more mainstream adoption. Then the long-term goal can be that after more adoption is achieved and consumers and merchants understand the technology better, the differences between centralized and decentralized options can be highlighted.
Dash is working with partners to advance cryptocurrency
In line with the recommendations of the Deutsche Bank report, Dash has grown to this date through partnerships with other cryptocurrency and non-cryptocurrency businesses that help give current users more options of where to spend their Dash. Some examples include Dash partnering with Cryptobuyer to get into more ATMs and POS devices throughout Latin America, Dash partnering with BitGo to enable integrations with more companies, Dash partnering with numerous exchanges, Dash partnering with a few companies that sell gift cards for cryptocurrency so consumers can make purchases at more mainstream locations. More partnerships not only means more spending, but also helps improve liquidity issues, which Dash has struggled with and needs to improve to see better exchange price performance to incentivize further adoption and usage.