Yesterday we reported that Deutsche Bank has slightly changed its vision regarding the cryptocurrencies as a replacement for fiat money. For some experts, it was weird to see because earlier, the representatives of the major German bank explained the opposite. Moreover, the analysts from the bank released a new report that evaluated the whole situation around the crypto adoption as a possible financial system. The process of crowding out traditional money with digital coins could go even faster if it were not for the bans on the part of regulators and governments of different countries, as well as the dependence of the crypto industry on electricity. After all, with the spread of digital coins, the need for mining will increase. Due to the fact that countries have different conditions and prices for electricity, the adoption of virtual currencies will slow down. Today, we decided to review four possible reasons for why and how it will happen. The Reason Number One – SWIFT can capitulate to Ripple In early November of this year, Ripple CEO Brad Garlinghouse announced that the XRP token is ten times safer for international payments than SWIFT. He believes that the interbank system is so slow that it aggravates the risk of losing money due to the volatility of the exchange rate during the transfer. The developers claim that Ripple is actually an analog of the current SWIFT payment system and allows transactions and cross-border transfers between banks. And several banks around the world are already using this technology. The XRP token was created to speed up money transfers and make them cheaper to process. In theory, it should become a universal exchange asset. Nowadays, it is challenging to predict when world banks will be ready to adopt this system completely but the possibility of such an action is huge. The Reason Number Two – Zuckerberg and His Future Crypto Empire The developers of the well-known social network and the creators of the popular messenger do not just offer cryptocurrencies but create payment ecosystems in which it will be really more convenient to pay with tokens than with fiat funds. If coins are popular with a mass audience, then central banks may lose their primary instruments of influence, and the status of national currencies will begin to weaken. The Reason Number Three – The World Financial Crisis is Coming (Spoiler – it is not) Last fall, the volatility of the British pound exceeded the performance of Bitcoin. In early September, the GBP fell against the dollar below $ 1.2. Such low price indicators were recorded for the last time in 1985. Except for a short-term collapse in the fall of 2016, when the pound for some time fell to the level of $ 1.15. Some analysts predict and expect another wave of the crisis this year but according to the today’s data top markets, as well as top currencies can resist it. A month earlier, the Chinese yuan fell 7% overnight. After that, the first cryptocurrency became a risk-hedging tool for many residents of China, so its price has risen sharply on local exchanges. Factors such as the ongoing trade war with the United States and monetary easing by the country’s central bank contributed to the CNY / USD depreciation. Last year, the countries of Latin America experienced the most severe hyperinflation. This reason has affected the record levels of bitcoin trading, more than once recorded in these countries. People try to save their savings and invest all their money in cryptocurrency. The Reason Number Four – Central Banks Want to Launch Own Digital Currencies Not so long ago, a new term appeared in the global economy – Central Bank Digital Currency. The acronym CBDC stands for digital money issued and secured by the Central Bank. Such coins are regulated by the state and have an official status of a means of payment, while this is not an electronic version of existing currencies, but tokens. And if now only commercial banks work with the Central Banks, which carry out settlements with each other through correspondent accounts, then with CBDC commercial banks will be able to settle accounts with each other directly without intermediaries. However, all calculations will still be transparent to the Central Bank, so there can be no talk of anonymity and decentralization of cryptocurrencies. Conclusion Overall, we can see that cryptocurrencies are gaining their momentum on highest levels. Governments and central banks seriously consider a possibility to employ digital currencies in a few years. Even though some of them still hate Bitcoin, it won’t stop the mass adoption at any point.