The Frankfurt-based investment bank published a report saying that non-sovereign cryptocurrencies pose a threat to political and financial stability as a real digital payment revolution has been underway for the last ten years. The report claims that even though cryptocurrencies are in the early adoption period, but they pose a threat given the current changes cash is undergoing.
Cryptocurrency is not going to replace cash anytime soon.
The financial giant, in its first of three reports titled “The Future of Payments,” claimed that the cryptocurrency is not going to replace cash anytime soon. However, the report notes that cash is losing ground as a payment method, as several countries replaced traditional payment methods with digital solutions.
“Bitcoin is too volatile to become a reliable store of value.”
The report says that digital currencies like bitcoin are too volatile to be a reliable store of value. The bank also suggested that a new digital currency could emerge and gain mainstream adoption. The report reads, “looking ahead, it may not be surprising if a new and mainstream cryptocurrency were to emerge unexpectedly.” Currently, the price of bitcoin is trading above $9,000. The first month of 2020 has been quite well for the leading cryptocurrency.