Deutsche Bank is out with it’s latest cryptocurrency report. The global banking giant has discussed central bank digital currencies (CBDCs) in great detail, and their effect on central banks, individuals, and governments.
In the discussion pertaining to individuals, DB says that CBDCs could encounter political resistance and encourage social unrest.
Central Bank Cryptos Could Make A World Of Difference
In it’s latest CIO Special report , German banking heavyweight Deutsche Bank observed that CBDCs could put users in a sweet spot with payments. Individuals stand to experience faster monetary transactions without third party interference.
Counter-party risk i.e., failure of one or more parties involved in a transaction, could be eliminated. DB went as far as to jibe cash transactions:
Depending on the CBDC technology used, money transfers could be anonymous and completely decentralized – as, ironically, old-fashioned cash transactions are now.
But there’s a catch.
CBDCs Have Big Shoes To Fill
Deutsche Bank notes that central bank crypto assets need to make their use case scenario much more appealing than conventional cash. CBDCs must be efficient and ‘cash-like’ to overcome skepticism amongst potential users.