During the last couple of months, the price surges of digital currencies like Bitcoin and Ethereum have attracted the attention of numerous banks, governments and other financial institutions. The Deutsche Bank, through its lead strategist Jim Reid, is the latest to express its opinion on the future of the financial market.
In a recently written paper, Jim Reid discusses what he refers to as ‘the start of the end of fiat money’. According to Reid, the dominance of the world’s current fiat-based currency system that is no longer based on gold is both unstable, and prone to deal with aspects such as high inflation. It has only managed to come this far due to the disinflationary shock that it suffered back in 1980, yet which is now reversing and bound to affect all of the world’s traditional currencies.
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