Deutsche Bank: coronavirus pushes central banks to accelerate with CBDC
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Speed of Chinese Coronavirus Pandemic Raises Concerns Among Governments About Cash Use.
Largest software the number workers and the amount assets German financial conglomerate Deutsche Bank considers, that the COVID-19 coronavirus pandemic is accelerating the development of central bank digital currencies (CBDC coins may stay in the past due to a new financial instrument – central bank digital currency (CBDC). As of… More), since the use of paper currencies carries great a threat to society.
The COVID-19 pandemic is accelerating the rise of central bank #digitalcurrencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards #digitalcash according to our #dbresearch colleague @MarionLaboure pic.twitter.com/ TnotaTKouK
– Deutsche Bank (@DeutscheBank) April 3, 2020
Marion Labour, a macro strategist at Deutsche Bank, believes that in the face of an unprecedented enemy, unprecedented methods of dealing with it are necessary. In particular, the macro strategy proposed to start developing in areas digital technologies, since advancement in this the area will sooner or later begin.
“A pathogen that emerges once every 100 years requires the same long-term solution. Obvious place for start – to accelerate the inevitable shift in development “, – stated Labour.
Earlier it became known that the turnover of paper money funds, transmitted from hand to hand, is capable of accelerating the spread of coronavirus infection between people. As a result of this discovery, many governments had to revise his policy on the circulation of money, and in some countries even began to stop movement currencies for two weeks quarantine.
It is also noteworthy that against the background of a raging infection in New York, the authorities USA decided to launch direct payments to all Americans in need in the amount of $ 1.2 trillion. How such an impressive pumping of money should affect the spread of infection – will show time.
More Togo, it seems that the Chinese virus may be the very cause due to which central banks everything-will decide to move from tests to practical use. Before the main thing Hong Kong Monetary Authority and central bank Thailand were able to successfully test international digital currency within the framework of cross-border transfers.
At the same time help fight coronavirus and cryptocurrency exchanges. So, eg, ZB.com crypto exchange announced the creation of a special fund aimed at combating the spread of coronavirus infection in the amount of $ 1.5 million.
When this Bank of England chief teller Sarah John said earlier that the central bank needs to accelerate with the development of CBDCs in order not to lose leading positions locally market.
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