Deutsche Bank, the largest banking institution in Germany, announced that digital central bank money (CDBC) could replace cash in the long run.
Deutsche Bank, one of the largest banks in Germany and the world with close to 100,000 employees, claimed that digital central bank funds (CDBC) or other digital currencies will replace cash in the long run. In line with this prediction, Deutsche Bank invited Europe to accelerate its efforts to develop its own digital currencies.
With the coronavirus, people’s cash habits have changed
Deutsche Bank Research, the bank’s research department, has released a new report of economic forecasts and recommendations to shed light on global economies affected by the pandemic. The report titled “What Should We Do To Reconstruct?” Was published on 10 November.
According to the report, the ongoing coronavirus epidemic accelerated the digital cash revolution. In the bank’s view, this revolution could result in CBDCs replacing cash in the long run, just like China’s digital yuan.
Stating that the use of credit cards has replaced cash with the bans and social distance measures worldwide, Deutsche Bank said that governments and companies should heed this demand. According to the report, in this case, companies or government managers should eliminate intermediaries by designing an alternative to credit cards.
The last one loses
In the report prepared by Deutsche Bank Research, European governments were also actively invited to work for digital central bank money, showing the progress of China and Sweden in the field of digital money. European states have also been warned of the risks associated with falling behind in the digital currency race.
According to the report, it will be inevitable to adopt the policies of the pioneers if the developments in the digital money sector are left behind. In other words, according to Deutsche Banke, if countries in Europe do not take action for their digital currencies as soon as possible; They may have to adopt other digital currencies and their policies.
Deutsche Bank has called for the strengthening of the euro and the development of a digital currency for Europe in the current geopolitical situation. It was emphasized that in order to do this, it was necessary to have an independent payment solution.