November 26, 2020

Deutsche Bank: COVID-19 pandemic will accelerate CBDC adoption

Deutsche Bank: COVID-19 pandemic will accelerate CBDC adoption

Deutsche Bank analyst Marion Labour expects central bank digital currencies to pick up in 3 years popularity around the world.

Marion Labour believes that the crisis will be an incentive for the transition to CBDC.

Europeans are starting to use cash less and less because of their ability to distribute COVID-19. Alternative, contactless payment methods are becoming increasingly relevant.

Amid the crisis, the Central Bank will massively providecash to enterprises and institutions. Methods of pumping money through the banking system through the so-called “quantitative easing”, when central banks flood banks with cash while buying bonds, have already come into operation.

Blockchain-based digital currencies can help streamline many processes.

Recall that a group of central European banks, created in January this year, have already begun to develop approaches to creating a national currency.

In addition, at the beginning of the year, the World Economic Forum published an instruction that would help central banks develop and launch digital currencies (CBDC).

According to Labour, these steps bring the Central Bank transition digital currencies. Both the coronovirus pandemic and the global economic crisis will undoubtedly bring closer the timing of issuing state cryptocurrencies as an alternative to fiat treatment.