- The bank’s report said that during times of uncertainty, people trust cash and that they can monitor their financial budgets easily.
- However, it did point out Bitcoin’s improvements over the past few years, including CME Bitcoin Futures and Options, and Bakkt.
According to a recent report by the Deutsche bank, Bitcoin is too volatile to threaten the existence of cash. The report also claimed that digital assets will eventually help in rebalancing global economic power. Deutsche bank had to lay-off 18,000 employees last year as a part of a long-term reduction plan to reduce its workforce to 74,000 by 2022.
The report by Deutsche bank was published after surveying a lot of its international customers about several financial topics. One of its findings talks about the notion that we will soon be living in a cashless society. The report reveals that banks, debit, and credit card providers, and especially governments are attempting to remove cash from day-to-day use. It noted that large paper bills are used in the black market and that many nations are eliminating them from their economies. However, in the end, the report refutes the idea of “the end of cash.” It added that during times of uncertainty, people trust cash and that they can monitor their financial budgets easily.
Over the centuries, people have developed a deep-rooted trust in paper and coins during uncertain times. Today is no different. For example, the trade war between the U.S. and China has led notable investors to increase their cash holding. Our survey shows that people also like cash because it allows them to more easily track their spending.
This being said, the report noted that digital payments will grow “at light speed, leading to the extinction of plastic cards.” The main reasons for these being mobile payments and digital currencies, if they get past their regulatory obstacles.
The report also mentioned the most popular cryptocurrency Bitcoin. It claims that Bitcoin’s high volatility stops it from serving as a “reliable store of value.” Nevertheless, it also showcased Bitcoin’s improvements over the past few years, including CME Bitcoin Futures and Options, and the introduction of Bakkt. Bakkt is described as a “significant gateway for institutional investors to enter the market because of its regulated warehousing.”
Deutsche added:
Under the current global system, people must go through several intermediaries to transfer money. This includes a sending bank, a receiving bank, and a credit-card operator. This system increases transaction costs as each intermediary takes a fee. Because cryptocurrencies are based on cryptography and the decentralized system, transfers operate directly between peers, thus removing various middlemen.
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