Deutsche Bank Changes Its Opinion on Cryptocurrencies and Fiat
Deutsche Bank Research issues three reports on the future of payments
Of course, it is difficult to ignore the fact that cryptocurrency has already taken a reasonably stable position in everyday life. With its development, we are already actively using digital cash as a payment method. On the other hand, there is an opinion that traditional money will not disappear shortly. For example, the largest bank in Germany, which, in turn, predicted the complete disappearance of fiat funds and replacing them with digital ones by 2030, changed its mind by 180 degrees.
But despite all this, the position of the bank cannot be called one-sided. Deutsche Bank is confident that cash will not go out of use for quite a long time, but at the same time believe in the possibility that the rapidly growing crypto industry will strengthen its position even more.
Over 50% of people in developed countries believe that cash will always be around
As part of the cash-focused report, Deutsche Bank Research conducted a survey indicating that a third of people in developed countries consider cash to be their favorite. At the same time, more than 50% are sure that cash will always be around. Additionally, the bank found out that Germans hold the highest average rate of cash among advanced economies, which accounts for 52 euro or about $57 at press time. According to Deutsche Bank, Germany plans to use even more cash in the coming six months.
The world’s two most populous countries encouraging greater use of digital currencies
Deutsche Bank further outlined that the future of cash will significantly depend on further developments in China and India, which are the world’s two most populous countries. Specifically, the bank emphasized that both countries have been encouraging greater use of digital currencies and blockchain.
As such, China’s President called for the country to accelerate its blockchain adoption in late 2019, while India’s securities regulator recently urged on January 23 that exploration of the best possible usage of blockchain in securities markets.
As China has reportedly seen progress with its government-backed digital currency, Deutsche Bank warned that the adoption of such a currency poses a serious threat to the United States dollar:
As to the growing trend of the crypto and blockchain industry, Deutsche Bank has also been actively working in the developments in this area. In September 2019, Deutsche Bank joined JPMorgan’s blockchain-based network, the Interbank Information Network, to reduce the cost of processing burdensome payments and offer better client services.