Deutsche Bank: COVID-19 pandemic will accelerate CBDC adoption

Deutsche Bank analyst Marion Laboure expects central bank digital currencies to gain momentum within 3 yearspopularity around the world.

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

Europeans are increasingly using cash less and less due to its ability to spread 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, earlier this year, the World Economic Forum published guidance to help central banks develop and launch digital currencies (CBDCs). 

According to Labour, these steps bring the Central Bank transition closer.to 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.