- Deutsche Bank says that there is a potential for a new cryptocurrency to become mainstream in the next couple of years.
- Deutsche Bank previously highlighted that existing cryptos are too volatile to be used as viable forms of payment.
According to the latest report by Deutsche Bank, the rollout of central bank backed cryptocurrencies (CBDCs) would not make commercial banks to be “vulnerable to bank runs.” The banks added in the report that CBDCs are likely to allow central banks to make interest bearing accounts available to every individual.
In its latest report, Deutsche Bank says that a new digital currency has the potential of becoming mainstream in the next couple of years. However, the first reported highlighted that the majority of digital assets in the crypto industry are too volatile to be accepted as a viable form of payment or even a store of value. In yet another report, the bank pinpointed that cash carried with it the benefits if guaranteeing it will still be in use for many decades in the future.
Central banks around the world continue to toy with the idea of launching digital currencies to either replace the cash system or supplement it. Digital currencies are becoming attractive to the regulators in terms of reducing the cost of printing paper money, faster and cheaper transactions among other things. However, apart from the People’s Bank of China, which has confirmed the development of a digital currencies, other central banks are yet to move past the idea stage.
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