History has shown that the collapse of fiat currencies is possible. However, cryptocurrencies and the solutions they provide are still under development. Thomas Mayer, a former chief economist at Deutsche Bank, said this emerging alternative to paper money could prevent the eventual boom-depression cycle and wave of credit bubbles created by fiat currencies.
Low market penetration and high volatility make Bitcoin far from the ideal value transfer method, and scalability issues also prevent it from surpassing mainstream adoption, making it a niche currency with unstable purchasing power. Although the issue of volatility can be solved by using stablecoins, scalability currently requires a more focused approach. Mayer claims that after the issuance of the CBDC, the European Monetary Union may become more stable and may reduce its debt ratio to 25% of total GDP.