Credit: Jasmin Sessler – Pixabay
In his latest report, Deutsche Bank claims that the Bitcoin is too much volatile to be considered a reliable store of value. The financial institution nevertheless considers that the crypto-currencies have the potential to revolutionize payment standards.
In order to produce his report " Part I. Cash: the Dinosaur Will Survive… For Now " Deutsche Bank interviewed nearly 3,600 people in the United States, China and Europe.
Our survey shows that people like cash. Although we believe cash is here to stay, the decade to come will see digital payments increase at a slow speed, leading to the extinction of plastic cards, "she wrote.
Credit: Deutsche Bank
Whereas for the German bank, the crypto-currencies are still "in the early stages of adoption", she believes that in time they have the potential to " revolutionize payment standards ".
Some believe that crypto-currencies should be considered an asset class, similar to gold. Maybe, but cryptocurrencies are also a revolutionary new technology which can change the way we interact with payments. Looking to the future, it may not be surprising that a new traditional cryptocurrency unexpectedly emerges, ”she said.
Although some traders like Cheapair or AT & T have started to accept crypto-payments Last year, Deutsche Bank reports that this type of payment still represents a " tiny fraction of global payments ".
Credit: Deutsche Bank
In another report released last month, Deutsche Bank was already suggesting that cryptocurrencies could represent the cashless company of the 21st century.
Bitcoin is too volatile to be a reliable store of value
Credit: Deutsche Bank
To minimize the fluctuations common to conventional cryptocurrencies, the industry has started to adopt a type of cryptocurrency called stablecoins. This price stabilization generally requires some sort of reliable intermediation or a centralized infrastructure. Among the most well-known stable coins that use this approach is Libra offered by Facebook, ”concludes Deutsche Bank.
This fall, the German bank joined the Interbank Information Network (IIN) JP Morgan based on blockchain.
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