Deutsche Bank: «state cryptov currencies will replace cash.»

12.11.2020
In the opinion of Deutsche Bank analysts, state cryptov currencies will replace cash. Digital currencies of the Central Bank may also eliminate intermediaries in the banking system, which will cause serious consequences.

published this week report
Deutsche Bank analysts listed economic assessments and proposals to help the world economies affected by the COVID-19 pandemic. The report, which contains sections related to environmental protection and small business protection, also discusses the transition to digital currencies, including government currencies;

Citing the fact that «cash became a focus of attention during the pandemic,» and fears of virus transmission, Deutsche Bank macro-strategy Marion Laboure writes about the need to «promote» digital currencies to keep up with countries that are already doing so;

According to the report, since China’s national crypt currency DCEP and the Swedish digital krone is under active testing, other countries need to speed up their own digital currencies. Otherwise, the private sector will use digital currencies that will be available first, including government cryptov currencies;

However, according to Laboor, developments in most developed countries are very slow and many central banks are only now beginning to «rethink the seventeenth-century cash model» and explore state cryptov currencies. For example, in October, U.S. Federal Reserve Chairman Jerome Powell stated that the digital dollar is not a priority for the country, and the European Central Bank (ECB) this month only started>
to study public opinion on the digital euro issue;

The development of the state cryptovolta has become a race between world leaders, with the USA still lagging far behind China. Recall that in January the central banks of Canada, Great Britain, Japan, Sweden and Switzerland, the ECB and the Bank for International Settlements (BIS) created
a task force for a joint study of government cryptovalues.

Deutsche Bank analysts believe that «sooner or later state cryptov currencies will replace cash». Deutsche Bank details that central banks in many developed countries face strong user attachment to cash, mainly due to problems with the confidentiality of digital currencies;

Laboor notes that such «cultural norms/confidentiality norms» need to be «overcome» in the process of developing state crypt currency. The study conducted by Deutsche Bank showed that many people believe that cash will never disappear;

According to analysts, government cryptov currencies «can help get rid of intermediaries in the banking system,» as clients keep their money directly with the Central Bank rather than with a private bank. In this case, a global banking sector with a multimillion-dollar turnover may be approaching the end of its existence, with serious financial and economic consequences;