Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

Since the covid-19 outbreak wreaked havoc across the world’s economies, the global multinational investment bank Deutsche Bank has been encouraging the use of digital currencies. The firm’s Twitter account and macro strategist Marion Laboure have been tweeting regularly about how coronavirus infection risks could “accelerate digital payment systems across the world.”

Also read: 5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

Deutsche Bank’s Macro Strategist Envisions a Digital Payment Transformation Post Covid-19

The coronavirus is surely changing the way we look at things and how we operate in our everyday lives. For years now, society has been aware that physical currencies can be dirty and the covid-19 outbreak has exemplified this fact. Researchers have reported that paper currency can carry a higher number of microorganisms than your toilet. It has been said that the seasonal flu virus can survive on a banknote for roughly 17 days. These statistics have caused governments across the world to store notes in separate locations and even scrub them. Last month, the U.S. Federal Reserve was storing repatriated USD from Asia in a different location. The month prior, when covid-19 was ravaging China, the People’s Bank of China (PBoC) explained that repatriated yuan notes were being disinfected.

Germany’s Deutsche Bank AG and the financial institution’s macro strategist Marion Laboure think trends like these will bring about a number of digital currency concepts. On April 3, the bank’s official Twitter account stated:

The covid-19 pandemic is accelerating the rise of central bank digital currencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards digital cash according to our Deutsche Bank research colleague Marion Laboure.

The bank’s macro strategist Marion Laboure has been tweeting about the coronavirus accelerating the use of digital currencies and causing a “transformation.” “The recognition of the infection risk will likely accelerate the push towards digital payment systems across the world,” Laboure said. In a recent report called “The Covid-19 Cash Out,” authors Juergen Braunstein, Marion Laboure, and Sachin Silva wrote about a possible transformation.

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

“Because the hand-to-hand exchange of physical currency could transmit the coronavirus, countries around the world are being forced to reconsider the use of cash,” the researchers detailed. The report highlights that the authors can’t predict what will happen in a post covid-19 economy, but they can envision a new type of payment structure. “Digital versions of cash currency, such as Sweden’s recently announced e-krona, are promising examples of what could be in store,” the report concludes.

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

‘Digital Payments Could Rebalance Global Economic Power,’ Says Deutsche Bank Researchers

Various other tweets and reports by Laboure and the official Deutsche Bank Twitter account mention central bank digital currencies (CBDCs). The financial institution’s reports also talk about digital assets that exist today like bitcoin, e-wallets, stablecoins, the possibility of a digital yuan, and balancing the monetary system. Various quotes from the bank’s researchers stress things like “By 2025, e-wallets are expected to be the second-most preferred method of payment after cards – and the first among millennials” and how the “transition to digital payments could potentially rebalance global economic power.”

Of course, the bank is shilling CBDCs and stablecoin concepts that represent digital fiat reserves. These new digital systems would be no different than the digits citizens use today, except it would use a blockchain. It’s not very likely a CBDC will rebalance any power because it’s centralized. Society has already seen what modern central banks worldwide will do to the citizenry’s money over time. With cryptocurrencies like bitcoin, on the other hand, Satoshi created a financial system that is not controlled by a single entity, corporation, government, or central bank.

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments
“The root problem with conventional currency is all the trust that’s required to make it work,” explained Satoshi Nakamoto on Feb. 11, 2009. “The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve.”

It might be small right now, but this is why the crypto economy is worth close to a quarter of a trillion U.S. dollars. People find value in cryptocurrencies that can give people financial privacy, censorship resistance, and allow them to transact in a peer-to-peer fashion. Deutsche Bank is right that physical banknotes are dirty but the financial incumbent’s digital transformation ideas are questionable, to say the least. Ever since the modern central bank was born and the many that followed after, the monetary system has been plagued with busts and booms.

What do you think about Deutsche Bank shilling digital currencies because of covid-19? Let us know in the comments section below.

Tags in this story
Banknotes, BCH, Bitcoin, bitcoin cash, BTC, CBDC, Centralized Digital Currency, Coronavirus, COVID-19, Cryptocurrency, Deutsche Bank, Deutsche Bank AG, Digital Assets, digital payments, dirty money, disinfect, Fiat, germs, Juergen Braunstein, Marion Laboure, microorganisms, PBOC, People’s Bank of China, Post Covid-19, Sachin Silva, Satoshi Nakamoto, Stablecoins

Image Credits: Shutterstock, Pixabay, Wiki Commons, Deutsche Bank Research

Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Please enable JavaScript to view the

comments powered by Disqus.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews



Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Millions in Cryptocurrency Stolen by Scammers in the Last Month According to Tenable Research
November 24, 2021
Behind The Scenes: How this Crypto Community Responded to + $50m Hack
October 18, 2021
Crypto Scams
Crypto Scams Still Persistent In 2021, SEC Warns About Red Flags To Watch
September 9, 2021
Poly Network
Here’s How Hackers Stole Over $600 million in the Poly Network Attack
August 12, 2021
The World’s Most Infamous Crypto Hacks and Scams
July 31, 2021

Blockchain/Cryptocurrency Questions and Answers

Crypto casinos
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
Cryptocurrency
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
Ethereum
The Unconventional Guide to Ethereum
October 28, 2021
ICo Presale
The Science Behind ICO Presales…
October 14, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin55,174 0.31 % 0.78 % 5.62 %
Ethereum4,154.8 0.00 % 1.27 % 3.77 %
Binance Coin611.74 1.24 % 3.14 % 4.70 %
Tether0.9986 0.03 % 0.08 % 0.23 %
Solana199.19 0.66 % 1.17 % 7.71 %
Cardano1.580 0.90 % 0.80 % 15.84 %
XRP0.9578 0.13 % 0.07 % 12.23 %
USD Coin1.000 0.14 % 0.20 % 0.17 %
Polkadot30.87 2.19 % 17.29 % 10.73 %
Dogecoin0.2215 0.68 % 1.42 % 7.23 %

bitcoin
Bitcoin (BTC) $ 55,354.00
ethereum
Ethereum (ETH) $ 4,163.82
binance-coin
Binance Coin (BNB) $ 611.55
tether
Tether (USDT) $ 1.00
solana
Solana (SOL) $ 199.10
cardano
Cardano (ADA) $ 1.58
xrp
XRP (XRP) $ 0.960332
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 35.95
dogecoin
Dogecoin (DOGE) $ 0.208361