Deutsche Bank: Digital RMB will weaken US dollar's dominance in global financial system

According to foreign media reports on January 26, Deutsche Bank released a new research report called "Future Payments". The first part of the report discussed that in the context of the current payment system transition to digital payments, cash will presence.

(Image source: pexel.com )

The report published by Deutsche Bank predicts the development trend of cash, network, mobile, cryptocurrency and blockchain. The first part of it predicts that cash will become part of the economy in the next few decades, because people will generate paper currency in uncertain times. Entrenched trust.

Factors that have contributed to the long-term existence of cash include: banknotes are easier to monitor spending, payment is faster, more convenient, and accepted in almost all places. At the same time, it is a secure payment method and maintains anonymity when buying. The bank's survey of 3,600 customers in the United States, the United Kingdom, China, Germany, France and Italy revealed that cash is more convenient for tipping and it is easier to protect users' funds from cyber attacks.

• The largest Ponzi fraud in history-the so-called institutional entry is not as mysterious as imagined
• Understanding Blockchain from Scratch: The Basics of Blockchain Technology
• Bright flags! French central bank governor opposes privatization of digital currency, affirming its usefulness

Digital payments will grow at "speed of light"

Although cash will still exist, digital payments will also grow at "speed of light" during this period, which is said to lead to the demise of bank cards.

Despite regulatory obstacles, the growth of blockchain wallet users is still "mapping" the early development of Internet users. The bank predicts that the number of users of blockchain wallets will reach 200 million by 2020, four times the current number.

In addition, the German multinational investment bank said that the size of mobile payments is expected to triple in the next five years, and emerging markets are expected to feel the impact of mobile payments earlier.

The report states:

As China and India develop strategies such as electronic payments, cryptocurrencies, and peer-to-peer, the center of global economic power may shift.

Deutsche Bank points out that China is already developing a digital currency supported by the central bank, which can be used as a "soft or hard power tool". Chinese companies will adopt digital renminbi, which "will definitely weaken the dollar's dominance in global financial markets."

Report describes the future of cryptocurrencies

A report published by Deutsche Bank explains the mechanism of Bitcoin in detail, and also mentions that Bitcoin is a highly volatile currency. In order to maintain the stability of investment funds, stablecoins endorsed by fiat currencies are welcomed by investors. The "price stability of stablecoins usually requires some trusted intermediary or centralized infrastructure."

Deutsche Bank said that cryptocurrencies are still in the early stages of application, but "we expect more cryptocurrency-related experiments to begin in a rapidly digitized social and financial crisis environment."

Speaking of the use of cryptocurrencies, the report said that although some stores have started to accept cryptocurrencies as a payment method, the number of merchants accepted is still small, but at the same time, online travel booking platforms The growing trend for retailers such as Newegg to pay for cryptocurrencies is clear.

The use of Bitcoin for payments has begun to rise, but it still only accounts for a "small portion" of the global payment system. "However, cryptocurrencies have the potential to revolutionize current payment standards."

We will continue to update Blocking; if you have any questions or suggestions, please contact us!