The Deloitte survey states that some respondents believe digital assets could replace fiat, adding that many worry about survival without blockchain.
Multinational professional services network Deloitte, recently released a report stating that digital assets could soon replace fiat currencies. The company revealed this in its 2021 edition of the Deloitte Global Blockchain Survey report. The company states in the report that the financial services industry (FSI) must aim for “product modernization and distribution” to ensure survival. Deloitte suggests that this adoption should be through blockchain and digital assets technology.
The leading accounting firm believes this is important because of the responses to its survey. Deloitte states that 73% of respondents fear that their companies could lose their competitive advantage if they do not incorporate blockchain and digital assets with fiat. The report further states that 76% of organizations believe that digital assets will succeed fiat money as the conventional legal tender within the next decade.
Methodology for the Deloitte Global Blockchain Survey 2021
Deloitte carried out the report’s survey between March 24th and April 10th this year, sampling 1,280 top executives in 10 locations. The survey was carried out in Brazil, Germany, Japan, Singapore, South Africa, United Arab Emirates, United Kingdom, and the United States. Other regions touched on were mainland China and the Hong Kong special administrative region.
The survey grouped respondents into the three categories below:
- Overall (all participants)
- FSI Overall (top FSI execs) and
- FSI Pioneers (top FSI execs already using blockchain.)
The report acknowledges how the pandemic drastically altered the norm and spurred a new wave of digitization. Such necessary digitization changes have not been without a few challenges and growing pains. However, there is a general consensus that the opportunities provided by adopting blockchain, digital assets, have boundless revenue potentials. According to the survey, 93% of leading personalities in the financial services industry strongly or somewhat agree with this sentiment.
Linda Pawczuk, a Deloitte Consulting LLP principal, also weighed in saying:
“In the last year, we’ve seen a significant shift in how the global financial ecosystem is thinking about new business models fueled by digital assets, and how this is playing a meaningful role in financial infrastructure”.
Also a major player in the global blockchain and digital assets space, Pawczuk touched on banking. The principal said that the current model of banking is archaic, suggesting a better way via blockchain. She said that the industry’s pioneers must now develop “innovative ways to create economic growth in the future of money”.
The underlying theme of this year’s ‘Global Blockchain Survey’ is the revolutionization of the global financial services industry, via blockchain-enabled digital assets.
Traditional Finance Houses Now Embrace Digital Assets Along With Fiat
Many major traditional financial organizations are now gradually integrating digital assets into their client offerings. Until a few months ago, institutions such as JPMorgan and Goldman Sachs, were averse to adopting crypto into mainstream banking. However, both institutions now have Bitcoin funds that cater exclusively to wealthy clients.