The Bank published its report in 3 part which focused on Cash, Digital Wallets and Digital Currencies. There were certain changes made in its current report as the bank now believes that fiat will be around for longer time .The bank in its earlier report said that cryptocurrencies will replace fiat by 2030.
Report says that the cryptocurrencies being only a decade old has shown its capabilities to “radically change payments, banking, central banking and the balance of economic power.”
China’s digital yuan and Facebook’s Libra are expected to be launched this year.The report said that could make digital currencies available to more than 1.5 billion Chinese citizens and 2.5 billion Facebook users – combined, more than half of the world’s population.
It also shown its concerned towards the large volatility of Bitcoin which do not make it as “reliable” store of value.
As confidence shown on the cash the bank wrote:
“In this report, we argue that cash is unlikely to disappear anytime soon. However, a real digital payment revolution has been underway for the past ten years. Cash is losing ground as a payment method. Several countries have recently removed large notes worth $100 or more and implemented policies to replace traditional payment methods with digital solutions. In the midst of these changes, non-sovereign cryptocurrencies pose a threat to political and financial stability.”
The report also included the fact that people are sceptical about the digital currencies as they need large energy and also the fact that Bitcoin and Facebook’s Libra have been facing significant regulatory issues .Yet there is an increase in the number of blockchain wallet and there are also mobile companies providing them as default wallets. It this continues then wallets will number 200 million ,quadruple the current level .
Report was published as a result of proprietary survey on 3600 customers across the U.S. ,U.K., China ,Germany ,France and Italy.