Due to the turmoil of the Covid-19 pandemic, the multinational investment bank Deutsche bank supports the use of digital currencies. In the future, the bank expects digital payments to accelerate and more support for CBDC.

Deutsche Bank expects digital payments to accelerate

Marion Laboure, Deutsche Bank’s expert on the global economy, has posted on her Twitter that she claims that a coronavirus pandemic will speed up the digital payment system worldwide. She also stated in her account that koronavirus will also bring a number of digital currency concepts issued by the Central Bank (CBDC).

The recognition of the infection risk will likely accelerate the push towards digital payment systems across the world. #Cash #DigitalTransformation https://t.co/fGcJUbSYrR
— Marion Laboure (@MarionLaboure) March 21, 2020

At the beginning of the month, bank published in its official account:

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

Since the outbreak of the pandemic, there have been many posts and reports on Twitter that mention faster adoption of digital currencies and support the digitization of the monetary system. The reports of some major financial institutions also talk about digital assets such as Bitcoin, stablecoins or digital yuan.

Digitization of the monetary system

On Twitter, several cryptocurrency experts and banking analysts have also commented on the current situation, examining the possible future of the monetary system. In their report entitled The Covid-19 Cash Out, they stated:

By 2025, electronic wallets are expected to be the second most advantageous payment method behind payment cards. The switch to digital payments can potentially rebalance the global economy.

Although it is not very likely that digital currencies issued by the central bank will stable the global economy because of their centralized nature, they can speed up and streamline digital payments.

Deutsche Bank expressed its positive attitude to the cryptocurrency at the end of last year and even said that the next decade will belong to cryptocurrencies and blockchain technology. In addition to Germany, the proposal to digitize monetary systems due to the coronavirus pandemic has also been made in the United States.