Deutsche Bank Report: Digital Yuan Could Upset Global Power Balance, Plastic Will Die, Cash Survive

Deutsche Bank Report: Digital Yuan Could Upset Global Power Balance, Plastic Will Die, Cash Survive
ôîòî ïîêàçàíî ñ : news.bitcoin.com

2020-1-29 10:25

A new report from Deutsche Bank Research, Digital Currencies: the Ultimate Hard Power Tool, predicts that cash payments will remain for decades, but the emergence of digital payments “will lead to the death of the plastic card.” The report, which is the third installment in a series on payments by the group, points to economies like China in their rapid digitization and heavy reliance on online payment systems. Should the newly developed digital yuan come to prevalence, the report maintains, it could seriously challenge USD hegemony.

Also Read: Singapore Introduces Licensing for Crypto Platforms, New Payment Services Now Act in Force

End of Plastic, Survival of Cash

Deutsche Bank Research’s third installment to their Future of Payments series opens with quotes from European Central Bank (ECB) President Christine Lagarde and Nobel Prize winning economist Milton Friedman, discussing digital currencies and their predicted importance to future markets and commerce.

Unlike many prominent prognosticators of finance, the authors are perhaps unique in that they see cash as surviving for decades to come, despite rapid developments in digitization of payments. The report boldly proclaims:

When people discuss the future of payments they tend to predict the end of cash. Our view is different. Not only do we think cash will be around for a long time, we see the transition to digital payments as having the potential to do no less than rebalance global economic power.

The global shift does come with one casualty, however, and that’s plastic cards, says the group. “While cash will stay, the coming decade will see digital payments grow at light speed. That will lead to the death of the plastic card.” The paper notes: “Over the next five years, we expect mobile payments to comprise two-fifths of in-store purchases in the US, quadruple the current level.” As for developing countries, Deutsche Bank Research maintains that “Many customers in these countries are transitioning directly from cash to mobile payments without ever owning a plastic card.”

Crypto Adoption Mirrors Internet Adoption, But There Are Still Many Barriers to Mainstream Use

The report goes on to predict a continued mass adoption of crypto, which will closely follow the ever-growing number of internet users in the world. Still, when it comes to cryptos, Deutsche Bank Research is careful to clarify that “They have not been widely accepted as a means of payments despite their well-known benefits: security, speed, minimal transaction fees, ease of storage, and relevance in the digital era.” However they say that this could change.

“If the Chinese government, along with Google, Amazon, Facebook, or Apple (the so-called GAFA group), or a Chinese company like Tencent can overcome some of the barriers to cryptocurrencies … then cryptocurrencies could become more appealing. This will hasten their adoption and give them the potential to replace cash,” the publication notes. Further, “if the growth in blockchain wallet users continues to mirror that of internet users, then by the end of the decade, they will number 200 million, quadruple the current level.”

www.dbresearch.com Upsetting the Global Power Balance

Broaching the topics of “hard power” and “soft power,” Deutsche Bank Research sees China’s central bank digital currency (CBDC) potentially going either way. The group notes at the outset:

As China (and India) develop electronic, crypto, and peer-to-peer strategies, the epicentre of global economic power could shift. China is working on a digital currency backed by its central bank that could be used as a soft- or hard-power tool. In fact, if companies doing business in China are forced to adopt a digital yuan, it will certainly erode the dollar’s primacy in the global financial market.

In other words, should the Chinese government take a hardline stance on forcing commerce to be done in the new CBDC, given their significant economic clout, USD hegemony could be dealt a hefty blow. In the report’s view, the first major CBDC to market will also have a decisive advantage over even the Googles, Amazons, Facebooks, Apples and Microsofts of today. While the politically embattled libra could be huge, for example, it lacks regulatory approval and is weakened considerably by this.

“China is gaining a decisive advantage over financial applications that use DLT,” the report details. “This will likely disrupt the GAFAMs, which have prospered with the help of the personal data of customers. Whoever dominates a blockchain will control the trust of users on that platform. Whoever dominates the first major state digital currency will control the banking and e-commerce sector within that nation (at least).”

The report makes clear that USD still dominates global trade by leaps and bounds, but affirms, “The Chinese government has made tremendous efforts to internationalise the renminbi, similar to the US intervention in the early twentieth century. From 2000 to 2015, the RMB share as a settlement currency in China’s trade has increased from zero to 25 percent.”

www.dbresearch.com Government Good, Regs Necessary

Sadly for the cryptocurrency enthusiasts clicking on the Deutsche Bank report in hopes of seeing Satoshi’s vision for a peer-to-peer electronic cash system affirmed, the publication mostly praises central banks, heavy regulations, and operates under a bizarre assumption that state actors themselves aren’t subject to similar corruption as other markets. Not to mention an overall theme dismissive of concerns about privacy.

The report details:

Specifically, private cryptocurrencies significantly increase the risk of financial crime (e.g. AML, KYC, bribery, sanctions, and tax evasion). We expect that technological solutions and regulation will evolve to sufficiently address this concern.

“Our twentieth-century payment system needs to be upgraded and digitised. Governments, particularly those in Western countries need to wake up before it is too late,” the group declares. “That is because a private, loosely regulated digital currency is probably not the best response to the coming financial disruption … [Cryptocurrencies] must become legitimate in the eyes of governments and regulators.”

What are your thoughts on the Deutsche Bank Report? Let us know in the comments section below.

Images courtesy of Shutterstock, Deutsche Bank Research, fair use.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post Deutsche Bank Report: Digital Yuan Could Upset Global Power Balance, Plastic Will Die, Cash Survive appeared first on Bitcoin News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Digital Rupees (DRS) íà Currencies.ru

$ 6.38E-5 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $6.38E-5 - H: $6.38E-5
Êàïèòàëèçàöèÿ $32.611k Rank 99999
Äîñòóïíî / Âñåãî 510.803m DRS

digital cash report deutsche bank payments plastic

digital cash → Ðåçóëüòàòîâ: 126


Ôîòî:

Deutsche Bank: Crypto Won’t Kill Cash Anytime Soon

Researchers at Deutsche Bank say cash will not become obsolete in the near future even with the growing pivot towards cryptos and other forms of digital currencies. Crypto Hasn’t Accelerated the End of the Cash Era In a January 2020 report published by Deutsche Bank researchers argued that despite the popularity of cryptos and the apparent war on cash payments by some countries, the end of the cash era isn’t near.

2020-1-27 17:00


Ôîòî:

Why Nick Szabo Probably Isn’t Satoshi

Search online for ‘possible creators of Bitcoin’ and Bit Gold creator Nick Szabo will always appear near the top of the list. His long history in the cypherpunk space, his writings on money, digital cash, and smart contracts, and some facts about his past have often been used to create a compelling picture that he […] The post Why Nick Szabo Probably Isn’t Satoshi appeared first on Bitcoin News.

2020-1-2 16:50


Ôîòî:

eToro’s Twitter-Based Cryptocurrency Trading Strategy Could Be Ruined by Artificial Intelligence

eToro’s new TheTIE-LongOnly CopyPortfolio attempts to collapse the entire crypto sentiment of Twitter users into an automatically rebalancing basket fund—and that might be a big problem. Currently, the TheTIE-LongOnly CopyPortfolio algorithm automatically invests in a selection of up to 13 different digital assets, these are: Bitcoin (BTC), Ethereum (ETH), XRP, IOTA, Bitcoin Cash (BCH), NEO, […] The post eToro’s Twitter-Based Cryptocurrency Trading Strategy Could Be Ruined by Artificial Intelligence appeared first on BeInCrypto.

2019-10-19 02:17