The fiat currency system is "inherently unstable and prone to high inflation", Deutsche Bank strategist ReidJim Reid has said. In a paper on the end of fiat money, Jim Reid said the system could be seriously tested over the next 10 years as the disinflationary tendencies that have kept it afloat for the past three decades slowly start reversing. He added that if inflation becomes more uncontrollable, people could lose faith in paper currencies, making cryptocurrencies more appealing and competitive.
The fiat currency system is "inherently unstable and prone to high inflation", Deutsche Bank strategist Jim Reid has said. In a paper on the end of fiat money, Reid said the system could be seriously tested over the next 10 years as the disinflationary tendencies that have kept it afloat for the past three decades slowly start reversing. He added that if inflation becomes more uncontrollable, people could lose faith in paper currencies, making cryptocurrencies more appealing and competitive.