Bitcoin to be sixth largest reserve currency, research says
By 2030, bitcoin will be the sixth largest global reserve currency, according to new research. Developing economies and blockchain investment will be the primary drivers of growth.
By 2030, bitcoin will be the sixth largest global reserve currency. Technology industry advising company Magister Advisors interviewed 30 bitcoin companies and found this view across the board, according to a report by International Business Times.
Currently, bitcoin is experiencing a large increase in value, which was partially fueled by the European Union's decision to declare it a currency and make exchange transactions exempt from valued added taxes. Magister also found that the blockchain will be the key factor that will drive this growth.
Banks will invest at least $1 billion into bitcoin and blockchain projects over the next 12 to 24 months, according to the report. "Blockchain is without question the most significant advancement in enterprise IT in a decade, on a par with big data and machine learning. What JAVA is to the Internet, blockchain is to financial services," said Jeremy Millar, partner at Magister Advisors. "Banks will initially be unwilling to remove the core infrastructure that handles the process of clearance and settlement but they will increasingly run parallel blockchain processes, evidence by the spike in investment that our poll has identified."
According to Miller, Magister's interviews with the bitcoin companies gave further credence to the idea that bitcoin is gaining traction especially in vendors and the developing market, which will drive widespread acceptance.
Although currently 90 percent of total bitcoin in value is held for speculation, 90 percent of bitcoin transactions are commercial transactions in developing economics, according to the report
"Two million smartphones are being activated per day, so the question arises in developing economies, especially those where corruption is a factor, why open a bank account?" Miller said.