A worldwide currency? The future of money
Jul 24, 2019

The age of multiple fiat currencies will be well and truly over in 50 years, according to new research that predicts cryptocurrencies and blockchain at the heart of a new financial landscape.

IG, which trades forex, cryptocurrency and other assets, looked ahead to the world of 2069. Its research - A Time Traveller’s Guide To The Future of Trading - suggests cryptocurrencies will have won the battle with fiat currencies and that blockchain networks will have replaced exchanges in 50 years.

It stated: “It may sound like lofty thinking, but the introduction of a global cryptocurrency and mainstream adoption of blockchain could be closer than we think.

“Through cryptocurrencies such as bitcoin, ripple and litecoin, blockchain is already being used to store transaction data in secure, transparent and readily-available databases.

“Additionally, a number of cryptocurrency networks are already powering smart contracts and decentralised apps – including Ethereum, NEO and EOS.IO – suggesting that the popularisation of blockchain and cryptocurrency trading accounts may not be too far away.

“Moreover, the concept of a global currency has been around for a while, with suggestions including the Geary-Khamis dollar – an international dollar which would slowly phase out all modern-day fiat currencies and disrupt traditional forms of forex trading.”

The potential power of cryptocurrencies has been a hot topic for debate in recent weeks after Facebook announced it was going to launch Libra – its own digital payment method.

The move is a further to challenge to the existing order – with the likes of Twitter’s Jack Dorsey suggesting that the world will eventually end up with a single shared method of payment.

He told The Times: “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin.” Dorsey’s bold prediction is that this could happen in ten years. While it remains to be seen if the future is dominated by one or more cryptocurrencies, there’s mounting evidence that this could usurp fiat currency is one form or another.

IG’s research also predicts thought-powered trading, AI assistants and holographic 3D trading rooms powered by smartphones will be commonplace by 2069.