@Deloitte: "The fiat currency will be gone in 5 to 10 years".

[dothebeats]

They have reasons to believe that it will be gone, given that the current state of research on CBDCs and the overall trends and interests in cryptocurrencies around the world is improving. More and more huge companies, together with banks and governments, are recognizing the potential of digital currencies if it is integrated in the economy, hence why Deloitte thought that maybe the end fiat is nigh. Perhaps their projection is very sudden, but I can see that fiat will soon be outdated and replaced by digital currencies.

[Natalim]

They have reasons to believe that it will be gone, given that the current state of research on CBDCs and the overall trends and interests in cryptocurrencies around the world is improving. More and more huge companies, together with banks and governments, are recognizing the potential of digital currencies if it is integrated in the economy, hence why Deloitte thought that maybe the end fiat is nigh. Perhaps their projection is very sudden, but I can see that fiat will soon be outdated and replaced by digital currencies.

As far as i know, even if digital currencies will become mainstream and be adopted legally, i don't think fiat will be totally gone. They will definitely stay and maybe digital currencies will only be integrated into fiat so that fiat will still be functional in the long run.

I know i am very enthusiastic and optimistic about bitcoin and the rest of cryptocurrencies but admit it, fiat is still benefited by the most part of the world so we can never really tell that 5-10 years from now, fiat will lose its value and will be replaced totally by digital currencies.

[sana54210]

I think the most important word to mention is, "digital currencies" .... because they know it is not going to be a "token" or "currency" that will not be controlled and manipulated by the different governments.

And also, they should know that not every country or even every jurisdiction in a region will see the definition of "digital currency" in the same way, and I think as you point out most governments will only want the term applied to fiat they control.

I think they will keep crypto to "virtual currency".

I doubt that every nation will see the "virtual currency" as the same thing, there will be different explanations of it depending on the person. However at the end of the day we are talking about so much in the future that we should not really be looking to make that a big deal for right now. If we get to see crypto becoming more and more common, become legal tender and all that, then we will definitely end up seeing something that is more accepted by the governments of other nations as well.

Right now it may not really change the opinion of states in USA just because El Salvador made it a legal tender, but if you see all of Latin America moving towards that, and we see other stuff as well, then we are going to end up with a lot more impact on bigger nations too.

[Spack17]

I don't believe this. There have been some news claiming that fiat currencies will be replaced by digital currencies in a short time period like this. But they are missing a point that it is not easy to convert everything to digital in a short time period. We may need even more time than 10 years to be able to use digital currencies everywhere as they will be the main currencies of all the countries. Governments are just doing a detailed research about these currencies now before making a serious move.

[verita1]

That's how it is! We are approaching the digital financial world.
We all know that the current banking system is crying out for change.
Bitcoin pushed the creation of digital money directly and indirectly when it demonstrated the power of money through P2P.
Deloitte is a privileged firm, today we are discussing the future according to its statistics and we have already given a taste of how it will work with all people around the world.
The progress of the inclusion of digital assets is booming.

[lalabotax]

I am not sure if this will happen only in 5-10 years later, too fast and this world seems not ready enough. Moreover, every country has different conditions. many people are still living in traditional ways, markets, and also payment methods.
Crypto has been more than 10 years, but in my country itself, most people still don't even attract or know about crypto. And crypto is not legal as payment here. So, the government will not let fiat over only 5-10 years later.

[LeGaulois]

...

Actually, how we use our credit cards, for example, is not a lot different than using digital currencies. The same could be said with our bank accounts. It's all about money with numbers recorded and managed by computers, databases, and algorithms. Almost everything is automated nowadays.
Since you think it takes a long time before being able to implement it, take a look at the recent examples we got. It didn't take China, Venezuela, or El Salvador 10 years to set up a digital currency. We already have 3 countries using crypto and/or CBDC.

Years ago we couldn't imagine that.

The fact of being able to use a currency everywhere in each country depends only on the determination of each country to do without the dollar and its "empire".
If the dollar is an international currency, it is solely the result of the Bretton Woods Agreement and the fact that the US is the world's leading power. But this will not last, as we all know. When they are no longer the leader, the dollar will be no more. China is on its way to overtake the US in the next few years.
Even if that doesn't happen, a lot of countries will be tired of the dollar. Look at Iran which is trying to do without petro-dollars because of US policy. By the way, by using crypto

The global elite is pushing the global economy towards a cashless society,and this process doesn't necessarily mean that cryptocurrencies will dominate global finance.I don't consider CBDCs to be cryptocurrencies.

Nowhere the paper says cryptocurrencies will dominate the finance

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Which means the survey results may not be representative of the public's general sentiment. The respondents have relatively high appreciation of the subject because they know and understand what it is. However, I believe only a minor percentage of the overall population in the world knows about crypto and blockchain. If the respondents were chosen randomly and widely scattered from different classes of people, economic status, education, and so on, the results could have been very different.

Anyway, I don't think the fiat currency will be gone in 5 to 10 years.

It's all about information so.

That's a good argument: the persons already know about CBDC and crypto. But why shouldn't it be the same with the mass population? People just need to be educated about it. As I said, it's just a matter of educating people. And believe me, when it's about money, people quickly understand

However, I believe only a minor percentage of the overall population in the world knows about crypto and blockchain

It depends on how you define "minor". I believe the US citizens are a good sample, right? 11% of the population has already bought/invested in cryptocurrencies (saw it on the news last week). Yet they're no expert in finance, they're the average Joe.

[doomloop]

Wonder which form of fiat the @Deloi.. is talking about, the physical, digital/virtual fiat currencies or both the physical and digital?
I think whoever the people of that time sees as their government will most likely control their currency especially in centralized manner.
So, if you end up with single world government, it will have ultimate control over the centralized currency/currencies.
It will be difficult for the entity/govt on Bitcoin unless it centralizes it which will be really hard for them at this point. Red line has been drawn, will they dare cross it? Bitcoin should remain a neutral currency and we should be able to print and use it on physical things when necessary.
Will fiat currency still remain by then? Well it depends on the definition fiat currency.

I am pretty sure mainly the physical one. Let's be honest cash has been a thing that is getting less and less used which means that there is a good chance we may not see that in the near future. Of course it is going to be around some more, there are way too many elderly people that still can't use smart phones or even credit cards and scared of what may happen or if they will be scammed only if they use a credit card, think of how hard it is for them to use something so simple.

However as the younger generation grows older and becomes those elder population, then we are going to see much less cash, and much more digital stuff. I do not know about 5-10 years, but in 30 years I am pretty certain that there will be only a few people that use case and we may end up not seeing any new cash printed while digital currencies of nations may get more attention.

[Mahanton]

I am not sure if this will happen only in 5-10 years later, too fast and this world seems not ready enough. Moreover, every country has different conditions. many people are still living in traditional ways, markets, and also payment methods.
Crypto has been more than 10 years, but in my country itself, most people still don't even attract or know about crypto. And crypto is not legal as payment here. So, the government will not let fiat over only 5-10 years later.

Wont happen even on 20 years.Everything might go digital but in the sense that fiat did really make a great role in the past and as long government do exist then its impossible that it would be overtaken
or having some total swap or integration through digital but since we dont know on what would happen in the future then its really that not a sure thing if this would happen or wont.
Basing up on how fast we do progress on then we can really tell that there might be some chances of probabilities but its hard to believe that it would really gone exist that easily
considering government do exist.

[AndySt]

I am not sure if this will happen only in 5-10 years later, too fast and this world seems not ready enough. Moreover, every country has different conditions. many people are still living in traditional ways, markets, and also payment methods.
Crypto has been more than 10 years, but in my country itself, most people still don't even attract or know about crypto. And crypto is not legal as payment here. So, the government will not let fiat over only 5-10 years later.

Wont happen even on 20 years.Everything might go digital but in the sense that fiat did really make a great role in the past and as long government do exist then its impossible that it would be overtaken
or having some total swap or integration through digital but since we dont know on what would happen in the future then its really that not a sure thing if this would happen or wont.
Basing up on how fast we do progress on then we can really tell that there might be some chances of probabilities but its hard to believe that it would really gone exist that easily
considering government do exist.

I believe that in any case, cash should exist at least for state security, because the presence of electronic devices is not necessary for the functioning of the fiat system, and fiat can exist and function in the most severe conditions of natural disasters and technological disasters. Although, of course, all the emphasis has been transferred to the world of digital currencies for a long time and all states have been betting on this for a long time. Another issue is that digital currencies that are promoted and implemented by states are mostly ordinary fiat centralized currencies under full state control, which operate on new technological platforms, including blockchain.

[Darker45]

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Which means the survey results may not be representative of the public's general sentiment. The respondents have relatively high appreciation of the subject because they know and understand what it is. However, I believe only a minor percentage of the overall population in the world knows about crypto and blockchain. If the respondents were chosen randomly and widely scattered from different classes of people, economic status, education, and so on, the results could have been very different.

Anyway, I don't think the fiat currency will be gone in 5 to 10 years.

It's all about information so.

That's a good argument: the persons already know about CBDC and crypto. But why shouldn't it be the same with the mass population? People just need to be educated about it. As I said, it's just a matter of educating people. And believe me, when it's about money, people quickly understand

Yes, I agree with you. It is indeed all about education. A long process of education should precede any step to adopt the use of CBDC or crypto. Incidentally, El Salvador somehow lacked this. However, it might matter a lot whether the country that is about to implement it has a technologically-aware population.

Anyway, people quickly understand only if the talk about money is particularly about how to have some. If it is something else, I'm afraid they are not interested and they don't care. People don't know and care about how the current money works.

However, I believe only a minor percentage of the overall population in the world knows about crypto and blockchain

It depends on how you define "minor". I believe the US citizens are a good sample, right? 11% of the population has already bought/invested in cryptocurrencies (saw it on the news last week). Yet they're no expert in finance, they're the average Joe.

I don't think the US citizens are a good example. You guys are simply much ahead. Your homeless has an iPhone. My country's poor doesn't have food on the table. But if the figure in the US is 11%, that simply means the figure in developing countries, which the world has in abundance, is much lower.

[jrrsparkles]

Wait of everyone comes from the blockchain sector then who will support the fiat and centralized economy?

I agree that in the next 10 years we may hardly use the physical cash anywhere in this world but the fiat maybe converted into digital or CBDC which are same as Fiat using blockchain technology, we are not growing towards the decentralized finance we are just moving towards digitalized World.

[qwertyup23]

I think they are completely disregarding the disparity among developed, developing, and underdeveloped countries in terms of technological advancement and priorities.

While I do see that developed and some developing countries may be able to adapt, underdeveloped countries would be heavily prejudiced assuming that this shift is soon to be implemented. Transacting using cryptocurrencies require the use of some sort of 'technology' or device that would allow a person to trade their coins. Remember that not all countries have the luxury of shifting toward this kind of implementation as there are other problems that they are more focused on dealing first.

[dezoel]

If you are considering central bank digital currencies as one of these digital currencies that they are talking about, then I guess saying fiat doesn’t really make any sense to me. Why I am saying this is because I also consider central bank digital currencies to be fiat, there’s really no difference between the two of them, they are still the same currency just that one is digital and the other is traditional.

If you check the central bank digital currencies that we have been seen so far such as the Chinese yuan, You will see that the value is the same for both currencies. But, this is not the same when you compare the fiat to order cryptocurrencies that are decentralized. So practically, the fiat system is still not going to be Dropped in five to 10 years like they have said, I can’t even imagine that taking place.

[jaberwock]

I don't believe this. There have been some news claiming that fiat currencies will be replaced by digital currencies in a short time period like this. But they are missing a point that it is not easy to convert everything to digital in a short time period. We may need even more time than 10 years to be able to use digital currencies everywhere as they will be the main currencies of all the countries. Governments are just doing a detailed research about these currencies now before making a serious move.

One thing I learned from the pandemic is that, if we actually want, things can be much faster than they currently are. If we compare before and after the pandemic era (not over yet but still) the digital transactions have taken a significant growth whether it's online shopping, payments or anything else.

It's not looking likely that fiat currency will be gone in the next 50 years, let alone 5 or 10 years. I am sure we will shift from cash to digital currencies very soon but that doesn't mean fiat is going anywhere at all.

It looks like many people confuse fiat with cash. Fiat means a currency regulated by the government so even digital currencies can be governed by governments.

[shield132]

Fiat won't be gone in 5 or 10 years, there are a lot of countries that massively use cash and also there are a lot of small cities in "these" countries that use only cash and you'll never find POS terminals.
If fiat currency is gone in 5-10 years, this mean that every bank should have internet and mobile banking + it's customers should have fully adopted those technologies. At the same time consider that it's the UI/UX designers job to create user interfaces that will be friendly and easy to use, that's where the Google mentioned that they are working and doing researches for the next billion users that they are waiting for to become part of the digital world. If we add the next billion users and fiat will be gone, then the ui/ux system should adapt the demand of both, the current and the upcoming users.

Btw this process can't be done in such a short time frame, don't think only from your personal experience and from the city where you live. There are countries where people search for jobs and apartments offline, in real life instead of websites because they just don't know. There are people who don't know how to install any app on windows too and there are people who can't do more than call / take photo on their smartphone. I wouldn't be in rush in this case about the adoption time.

[AicecreaME]

Deloitte has released its annual Blockchain report
https://www2.deloitte.com/content/dam/insights/articles/US144337_Blockchain-survey/DI_Blockchain-survey.pdf

Digital assets are disrupting the entire financial market

These are the first words of the paper...

For those who do not know this company Deloitte is one of the Big Four accounting organizations and the largest professional services network in the world by revenue and number of professionals

Notice they don't mention "Bitcoin" per se. Instead, they use "digital asset" since they considered CBDC as well, or "crypto-assets" .
Cybersecurity and regulations are the main barriers to mass adoption but they will be very important for decentralized finance.
But overall, the path to digital finance is soon complete.

Forget the cheques, it's good for grandpa. (just joking, I still use it myself)
We will all be living with digital money and digital wallets. 5 or 10 years, it's like tomorrow.

The paper is based on a survey of 1,280 executives with an understanding of crypto, digital assets, and blockchain. 320 were from the financial sector, including 70 digital asset pioneers. So not the teenagers at school.

Almost 80% of all respondents said that digital assets will be "very/fairly important" in the near future.

I don't think fiat money will be gone in the future. 5 to 10 years is still a short period of time to be fully transitioned to digital money and digital wallet all in all. It would be hard most especially for the poor and developing countries to adapt and adjust to such changes. In addition, I don't think that the government and the central organizations would allow such a thing to happen given that the fiat currency is what runs the economy of a country. If everything will be digitalized, many people will have a difficult time such as the older generations, indigenous people, and the lower class. Because not everyone is privileged enough to have smartphones, Internet connection, and knowledge about the technology.

What I think is the most probable situation that could happen in the next 5 to 10 years is that digital assets and physical fiat will coexist as mediums of exchange. People will have more options and alternative for paying for their transactions may it be online or face to face scenarios. Hopefully, improvements on transacting with either mediums will be smooth and hassle free, giving the convenience and security to both buyer and merchants.

[dupee419]

It is true, we are slowly transitioning from fiat to digital, no more paper money, most of us right now are switching to digital money, although it may seem like the world is turning digitally, fiat will still be around, seems unlikely for fiat to disappear in just 10 years, as long as people are still heavily using it and is still a legal tender, fiat won't disappear in such a short period of time.

[V-t.Ester]

This is the most likely scenario. Even now all of us are using credit cards, receive their salaries on cards, pay using cards or mobile apps in shops. What is this entire if not transformation of fiat money into some kind of “digital asset”. If terminals will be put everywhere and 24-hour internet connection will be provided the need in paper money will be exhausted. I understand that it’s not that simple but we are definitely on the way of getting rid of paper money.

[beerlover]

I don't think fiat money will be gone in the future. 5 to 10 years is still a short period of time to be fully transitioned to digital money and digital wallet all in all. It would be hard most especially for the poor and developing countries to adapt and adjust to such changes. In addition, I don't think that the government and the central organizations would allow such a thing to happen given that the fiat currency is what runs the economy of a country. If everything will be digitalized, many people will have a difficult time such as the older generations, indigenous people, and the lower class. Because not everyone is privileged enough to have smartphones, Internet connection, and knowledge about the technology.

What I think is the most probable situation that could happen in the next 5 to 10 years is that digital assets and physical fiat will coexist as mediums of exchange. People will have more options and alternative for paying for their transactions may it be online or face to face scenarios. Hopefully, improvements on transacting with either mediums will be smooth and hassle free, giving the convenience and security to both buyer and merchants.

Obviously fiat money will not be gone. However believe me when I say this, when there is a fall it will not be slow and painful, it will be very quick. Because at the end of the day, bitcoin is a much better version of money than fiat we know all of that, what is fiat really?

It is just showing a paper that proves that you do have that much money, normally that was a gold thing, you deposited gold to a bank and they gave you a piece of paper that showed that you owned that much gold, that turned into the fiat you hold in your hands these days, or digitally in your bank account. It really sucks, and when people start to realize this, and everyone starts to move to crypto, the crash of fiat will not be slow at all, it will literally crash.