Most of the nearly 1,300 worldwide executives surveyed in Deloitte’s annual global blockchain survey believe cryptocurrencies will replace fiat currencies in the next five to 10 years while playing an increasingly central role in finance.
In March and April, Deloitte surveyed 1,280 senior executives and practitioners in 10 locations, including Brazil, China, Germany, Hong Kong, Japan, Singapore, South Africa, the United Arab Emirates, the United Kingdom and the United States. The respondents had “at least a general understanding” of blockchain, cryptocurrencies and digital assets, according to the final report, which suggests “banks should embrace their inevitable digital future.”
“In a seismic shift, financial leaders increasingly see digital assets as the future,” adds the report.
“The end of physical money as we know it represents an overdue – and now inevitable – upgrade.”
The report points to the launch of the investigation phase for the digital euro project this July as evidence digital assets will overtake fiat currencies within this decade. More than three-quarters of overall respondents – 76 per cent – believe the changeover will occur; however, this number jumps to 94 per cent for financial services industry “pioneers,” according to Deloitte.
Like in past surveys, respondents also focused on the regulatory barriers and cybersecurity risks slowing society’s overall adoption of digital assets. More than 70 per cent of respondents stated cybersecurity threats were the largest obstacle while 63 per cent reported regulatory challenges were impeding digital assets’ global acceptance.
“The fact that the established norms of accounting and tax implications may not be applicable to digital assets will work in the industry’s favor,” adds the report.
“Banks face fierce competition in lending at home and abroad. They are exploring asset-based approaches for issuing loans, and we expect these shifts to be highly disruptive to financial services.”