Dt. Bank: crypto-currencies have the potential to replace cash

Deutsche Bank has published a new report on the future of crypto-currencies. Although the researchers of the Bank say that it will give cash for a long time, call them on a number of factors, which could back crypto to the forefront of a digital economy Transformation, including the introduction of tech-savvy Millennials.

According to the report, with the title “part III. Digital Currencies: the Ultimate Hard Power Tool”, pushing China and India to global economic change, by introducing new Peer-to-Peer strategies for digital payments. At risk, the researchers see the U.S. Dollar.

While China (and India) electronic, cryptographic and Peer-to-Peer strategies developed, could shift the epicenter of global economic power. China is working on its Central Bank-backed digital currency that could be used as a Soft – or Hard-Power-tool. If companies are running a business in China, will be forced to a digital Yuan to introduce, this will surely be the primacy of the dollar in the global financial market to undermine.

For investors in the crypto could offer, according to the researchers distinct advantages, such as low or negative correlation with financial assets, the possibility of creating the composite assets for better returns, the divisibility of the assets by means of Share fractions, and more accessible facilities.

Crypto-currencies have been around for a decade, but only in 2017, as the price of Bitcoin rose to almost $ 20,000, attracted worldwide attention. If we connect the dots between the dematerialisation of payments and the rise of crypto-currencies, we can imagine a near future in which crypto is a wide acceptance of currencies find. This view is supported by the Trends in the younger generations, the digital currencies and payments willingly accept.

Deutsche Bank surveyed 3,600 of customers in China, France, Germany, Italy, the United Kingdom and the United States. The researchers confirm that the Millennials expect the Emergence of a digital economy that is driven by a purely digital currency.

A large majority of Millennials believes that crypto-currencies will be good for the economy and said that you have already purchased a crypto currency and sold. More than a third of Millennials believe that crypto-currencies replace cash.

However, crypto-currencies, despite a “known advantages” such as “safety, speed, minimal transaction fees, easy storage and relevance in the digital age,” there is still no wide acceptance received:

Overall, however, have bought relatively few people to crypto-currencies and sold. You will be largely viewed as an additional means for financial transactions and not as a necessary or advantageous substitute for common methods.

The researchers assume, however, that the present degree of acceptance of change, especially when a technology giant with a huge user base for it to send that crypto is easy to spend and receive.

If the Chinese government can overcome with Google, Amazon, Facebook or Apple (the so-called GAFA-group) or a Chinese company like Tencent some of the barriers to crypto-currencies, crypto-currencies could be more attractive. This will speed up their introduction and the potential to replace cash.

The report argues that the main obstacles for Adoption of children, older people and the regulatory authorities. Older generations have currencies afraid of Crypto and will find it difficult to understand. This core target group also believes that crypto is a bubble in Dotcom-style trigger. The Supervisory authorities are sounding the Alarm, by pointing out risks associated with crypto-currencies, such as liquidity, custody, anti-money laundering (AML) and safety. What the Central banks and their role in the emerging crypto-relates to Economics, so they could use the technology to build their own “crypto-currencies”, speculate the researchers.

A crypto-currency, the Central Bank would provide an official Form of money supported by the government, and the possibility of Peer-to-Peer without any intermediary (commercial banks) to exchange.

The retail the form of a crypto currency the Central Bank would play the same role as each other today in the circulation of currency, while the wholesale form corresponds to the reserves of banks and other financial institutions. As in the case of a traditional currency would be decentralized in the transaction, and centralized power supply.

The full report, here to view.

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