Deutsche Bank's new report predicts that digital currencies will be widely distributed over the next few years.

Analysts at the German Deutsche Bank suggest that digital currencies, which are only ten years old, have already demonstrated that they are "potential to radically change payments, banking, central banking and the balance of economic power."

“We believe a new digital currency could become mainstream within the next two years. In the long run, a digital currency could eventually replace cash,” the report reads. Analysts recall such projects to be launched in 2020, as  Facebook’s libra and the Chinese government’s digital currency. The report notes that this could make digital currencies available to more than 1.5 billion Chinese citizens and 2.5 billion Facebook users. In total, this makes up more than half of the world's population.

"Still in their infancy, digital currencies have the potential to radically change payments, banking, central banking, and the balance of economic power. We have already moved away from the gold standard to fiat money, so why could we not take the next leap toward a digital currency?"

According to analysts, there may be more than 200 million blockchain wallets in the world by 2030.

This is the third Deutsche Bank report, which examines the future of the global payment system. As stated in the first report, many existing cryptocurrencies, such as bitcoins, are too volatile to be used as a viable means of payment or as a store of value. The bank’s second report said that cash would remain the preferred payment method, perhaps decades to come.

Although many of the same opinions are reflected in the third document, researchers also emphasized that digital currencies can combine the convenience of electronic payments with the confidentiality of cash payments. Central bank digital currencies (CBDC) are new ways to solve systemic problems in the global economy.

According to analysts of the German bank, if CBDC are deployed, central banks will be able to directly open credit lines to citizens. This could “many problems caused by the current fractional reserve banking system,” the report said.

"For example, the central bank would not be vulnerable to bank runs, and governments could stop providing deposit insurance

and bailouts to institutions deemed “too big to fail.” By doing so, moral hazard problems on the part of banks would be greatly reduced."

In the research, Deutsche Bank surveyed 3,600 customers of the bank. Although the report is limited to a small percentage of the population, the report noted a sharp contrast in relation to cryptocurrencies between respondents of older and younger age.

While most of the older generation never had cryptocurrencies and did not understand how they work, the vast majority of millennials born between 1981 and 1996 already traded cryptocurrencies and believed that they would be useful for the economy as a whole.