Digital assets will replace or compete with Fiat in 5-10 years
He believes that financial services companies should ride with cryptocurrencies, digital assets and blockchain, or risk losing to competitors.
Stable coins and central bank digital currencies have been identified as potential targets for firms looking to take advantage of the shift.
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The Delight survey found that most financial professionals expect digital assets to replace government-issued currencies within a decade, or at least offer a viable alternative.
Given this, financial services companies have to deal with cryptocurrencies, digital assets and blockchains, or risk losing ground to competitors as cryptocurrencies shake up the industry.
76% of them said they think digital assets would be a viable alternative or replace Fiat in the next five to 10 years.
They expect their business to benefit positively from a range of assets, such as stable coins and central bank digital currency, or CBDC; Algorithm-driven static coins and enterprise-controlled coins.
The flow of funds into digital assets is increasing, as institutions and investors take more interest in them as a source of value. There has been a huge increase in new business models around cryptocurrencies, reflecting the changes in the financial industry. The authors of the Deloitte report say that companies are looking at ways to change their traditional products to be prepared for the future needs of their customers.
Participating in the age of digital assets is not an option, it is inevitable. Leaders are left to decide how to use digital assets and the new global financial services infrastructure to their greatest advantage.
Overall, 80% said the industry would see new streams of revenue from digital assets and blockchain, with about half of the detention being identified as the first opportunity. Others include new payment channels or diversification of investment departments.
Read more: Coinbase CEO Says Regulation and Cybersecurity Are Biggest Threat to Cryptocurrency
More than three-quarters agree that if their company does not adopt blockchain and digital assets, it will lose the opportunity to leapfrog its competitors.
“Opportunities for real change in many areas of the global financial markets are for players looking for new ways to harness the power of blockchain technology and digital assets in their business models.” Said in a statement.
Professionals have been recognized as an obstacle to industry transformation, he said. About 65% said that the lack of financial infrastructure facing corruption is the biggest obstacle to the transformation of digital assets. Cyber security, regulatory issues and the need to protect privacy were heavily flagged as barriers.
For its survey, Deloitte included 1,280 senior executives from various industries, including financial services, in 10 locations in Brazil, China, the United Kingdom, Germany, Hong Kong, Japan, Singapore, South Africa, the United States and the United Arab Emirates. They were polled between March 24 and April 10 this year.