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Deutche expect to replace fiat money with digital currencies

Deutche Bank, which is one of the largest banking institutions in Germany, believes that digital currencies in the central bank will replace paper money in the future, as the bank’s research department discussed economic estimates and proposals to help global economic systems affected by the Corona pandemic, and said that the ongoing spread of the epidemic contributed to the rapid development of the revolution in the concept of digital money, and that this revolution will allow digital central bank currencies, such as the Chinese digital yuan or the Swedish electronic krona, to replace paper money in the long term, and the Bank called on national governments and private companies to work on alternatives to credit cards.

The German bank said that the general closure spread around the world and social distancing measures caused an increase in the use of credit cards instead of paper money, and in return companies and policy makers must find an alternative to credit cards and remove brokerage fees, but at the moment the bank believes that the priority is to focus on Regional digital payment systems, and in the long term central digital bank currencies will replace paper money.

The bank’s research department warned policy makers in Europe of the dangers of not developing their own digital currency to keep pace with the development of China and Sweden in this field, and added that other countries that would not keep pace with this development would find themselves forced to adopt digital currencies and the policies of other countries as a means of payment, and called on the bank to develop A European digital currency solution to strengthen the euro in the current geopolitical situation.

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