Deutsche Bank: Central bank digital currency will replace cash in long term
Deutsche Bank has called on Europe to accelerate the development of central bank digital currencies. Deutsche Bank, the largest banking institution in Germany, is confident that central bank digital currencies, or CBDCs, will replace cash in the future.The bank’s research arm, Deutsche Bank Research, published a new report on economic estimations and proposals to assist global economies hit by the coronavirus pandemic. Titled What We Must Do to Rebuild, the new edition was released on Nov. 10.In the report, Deutsche Bank states that the ongoing COVID-19 pandemic has accelerated the....
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John Cryan, CEO of Deutsche Bank AG, a German global banking and financial services company, predicted that cash will not exist in the next ten years. Cash is inefficient and expensive, he explained, while mentioning fintech as a possible substitute to replace fiat money. Since the beginning of 2015, an increasing number of banks and financial organizations have proposed the implementation of a cryptocurrency or a centralized blockchain-based token to potentially replace cash as the official currency of the central bank. By integrating a certain set of technical rules that would provide....
In a speech on Monday, Yves Mersch, Member of the Executive Board of the European Central Bank (ECB), discussed how the bank could design, issue, and manage a central bank digital currency for everyone, to be used alongside cash. One of the two types considered was a cash-like digital currency with anonymity. The proposed central bank digital currency or....
Could bitcoin be the invention that ultimately replaces cash today as we know it? Officials at the Bank of Canada don't think so. In a testimony held before the country's Senate Banking Committee, one of the bank's top officials said that as of this juncture it's simply too early to say whether or not digital currencies like bitcoin will replace fiat. "These are early days ... and so far digital currencies have not made it to what we call money," said Stephen Poloz, who serves as governor at the central bank. "We've got a ways to go before we need to be thinking about policy implications."....
Another financial authority is coming forth in what is becoming a long list of central banks to issue warnings on the use of the bitcoin digital currency. This time around it's the Deutsche Bundesbank, which as previously mentioned, is the central bank of the Federal Republic of Germany. Carl-Ludwig Thiele, one of the bank's board members, warns that bitcoin is highly speculative and extremely volatile. Both are sentiments that have been echoed by other central banks who have already issued warnings. Thiele reportedly says bitcoin is a "niche phenomenon", despite its explosion into the....
Central bank digital currencies have the potential to challenge the primacy of the U.S. dollar, according to a new report from Germany's Deutsche Bank.