Deutsche Bank has published a report analyzing the cash payment ecosystem in an age of digitalization. Based on a survey, Deutsche Bank found that cash would stay for now and digital payments could affect the balance of global economic powers.
A German multinational investment bank, Deutsche Bank, previously predicted that cryptocurrencies would replace fiat by 2030. Now Deutsche Bank declares that “will be around for a long time” as a preferred method of payment.
The Bank of Germany says digital payments will grow exponentially in the next five years and mobile payments are expected to account for two-fifths of store purchases in the United States, four times the current level. In contrast, this figure is less than 50% in China.
In Asia, e-payments have become the norm in recent years with platforms like Alipay and WeChat paying with large transactions. For China, the cash war is also consistent with the government’s efforts in Beijing to gain better oversight and control over its citizens on financial transactions.
Other places like Australia and Malaysia are looking towards limiting cash transactions. Most cashless drives of different governments aim to eliminate the major currency notes that researchers think are primarily used for black market deals.
Research Deutsche Bank released three reports on the future of payment
The bank forecasted an expected future for cash in one of the recent reports on the Future of Payments, made by Deutsche Bank’s research arm Deutsche Bank Research.
Deutsche Bank acknowledges the increasing role for the ongoing digital payment revolution, despite expressing confidence that cash will remain a major payment method in the near future.
China and India develop cryptocurrencies and digital payments
Deutsche Bank went on to outline that the future of cash will depend heavily on further development in China and India, which are the two most populous countries in the world. Specifically, the bank emphasized that both countries have encouraged the use of more digital currencies and blockchain.
Therefore, the Chinese President urged the country to speed up blockchain adoption by the end of 2019, while the Indian securities regulator recently urged on January 23 that exploration of the best possible uses of blockchain in the stock market.
China has been working with the digital renminbi and is forcing businesses in the country to use central bank digital currencies, the dollar’s dominance in international trade may decline.
Read more:
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