According to Dailyhodl reported on January 29, Deutsche Bank, Germany's largest bank, has just released a new report on the outlook for cryptocurrencies. Although researchers at the bank say that cash will still exist for a long time, they point out that some factors may push cryptocurrencies to the forefront of the digital economy's transition, including the adoption of cryptocurrencies by technology-savvy millennials.
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According to the report entitled "Digital Currencies: the Ultimate Hard Power Tool", China and India are driving the transformation of the global economy as they launch new P2P digital payment strategies. The U.S. dollar is at high risk.
"As China and India develop electronic, crypto and P2P payment strategies, the center of global economic power may shift. China is developing a digital currency endorsed by the central bank that can be used as a soft or hard power tool. In fact, if companies with operations in China have to adopt digital renminbi, this will definitely weaken the dollar's dominance in global financial markets. "
Researchers said that for investors, cryptocurrencies have obvious advantages: for example, they have a low or negative correlation with financial assets; they have the ability to create composite assets for better returns; and they can realize assets through partial shares Severability; and lower investment barriers to entry.
"Cryptocurrencies have been around for about 10 years, but it didn't attract widespread worldwide attention until the price of Bitcoin soared to nearly $ 20,000 in 2017. If we link the intangibility of payments to the rise of cryptocurrencies, we can foresee crypto Currency will be more widely adopted in the near future. This view is supported by the younger generation who are happy to accept digital currencies and payments based on them. "
Deutsche Bank surveyed 3,600 customers in China, France, Germany, Italy, the United Kingdom and the United States. Researchers have confirmed that millennials want to see the emergence of a digital economy driven by purely digital currencies.
"Most millennials believe that cryptocurrencies are good for the economy. They have traded at least one cryptocurrency. More than a third of millennials believe that cryptocurrencies are replacing cash."
Although cryptocurrencies have "well-known advantages" such as high security, fast transaction speeds, low fees, easy storage, and high correlation with the digital age, they still lag behind in adoption.
"However, in general, relatively few people have ever traded cryptocurrencies. Cryptocurrencies are largely seen as a supplement to financial transactions and not a necessary or advantageous alternative to mainstream methods."
However, researchers expect that if a technology giant with a large user base makes cryptocurrencies easy to send, use, and receive, the level of cryptocurrency adoption today will change.
"If Chinese companies such as the Chinese government, Google, Amazon, Facebook, Apple or Tencent can overcome some of the obstacles to cryptocurrencies, then cryptocurrencies may become more attractive. This It will accelerate their adoption and make them possible to replace cash. "
The report argues that the main obstacles to adoption are older people and regulators. The older generation was afraid of cryptocurrencies and found them difficult to understand. This core group also believes that cryptocurrencies are prone to trigger a cyber bubble. As for regulators, they are alerting investors by emphasizing cryptocurrency-related risks such as liquidity, escrow, anti-money laundering (AML), and security.
As for central banks and their role in the emerging crypto economy, researchers believe these institutions can turn to and embrace this technology to create their own "cryptocurrency."
"The central bank's cryptocurrency will provide an official currency form endorsed by the government and a capability to conduct P2P transactions without an intermediary (commercial bank). The retail form of central bank cryptocurrencies will play a role with any currency in circulation today. Currency will do the same, and its wholesale form will be similar to reserves held by banks and other financial institutions. Like traditional currencies, it is centralized in supply and decentralized in transactions. "
These tools will not be real cryptocurrencies, but digital assets that will not be centralized, issued or controlled by any central agency, company, government or consortium. However, the central bank can create a centralised digital currency known as the “Central Bank Digital Currency” (CBDC) or the Central Bank Digital Currency, which can trigger a seismic change in the course of currency evolution, change people's habits, and support new ones. Infrastructure, promote the popularization of cryptocurrency knowledge, and effectively build a bridge to fully decentralized digital assets such as Bitcoin and Ethereum.
Original: https://dailyhodl.com/2020/01/28/deutsche-bank-electronic-crypto-and-peer-to-peer-payment-strategies-could-become-epicenter-of-global-economic-power- shift /
Author: Daily Hodl Staff
Source (translated): Babbitt Information (http://v1.8btc.com/550613)