Deutsche Bank: we are at the end of the fiat money era

In his latest paper, the analyst from Deutsche Bank called Jim Reid suggests that the current financial system is full of flaws, and ignoring them will eventually put us all in a dire situation. Unless Ethereum World News retells the paper incorrectly, he repeats the popular myth about how everything was better before the currency was backed by gold, forgetting, like many other economists of our time, about the law of Copernicus and Grasham which tells that bad money always drives out the good money, not to mention that the speed of economy processes is now much more than the speed of gold mining.

However, his view on cryptocurrency and blockchain tech is really what interests us here, as Deutsche Bank is currently one of the wealthiest and most influential in Europe. Jim Reid believes: “Although the current speculative interest in cryptocurrencies is more to do with blockchain technology than a loss of faith in paper money, at some point there will likely be some median of exchange that becomes more universal and a competitor of paper money.”

This position is exactly what the leader of the Monetary Authority of Singapore calls unrealistic, although some flaws of the current fiat system mentioned in Reid’s paper actually exist and need to be fixed.