Cash has not lost its luster yet, as the global public still sees it as a vital hedge in times of crisis, stated a Deutsche Bank strategist – but the coronavirus pandemic has accelerated the rate at which people around the world are trashing cash in favor of digital forms of payment.
In a session entitled “The Future of Payments” held at the Paris Blockchain Week Summit, which concludes today, Marion Laboure, a Macro Strategist at Deutsche Bank, noted that bank research has shown that the COVID-19 crisis has accelerated the adoption of contact-free forms of payment. She added that this was particularly true in Western Europe.
Laboure stated that there has been a “remarkable increase in digital payments” of late, and that the e-commerce world had experienced the “rebirth of internet mass-market consumer.”
However, when it comes to assets the public trusts, notes and coins are king, the strategist noted, adding that large companies are continuing to build up cash reserves.
“If it happens, it won’t be next year.”
But not all attendees thought CBDCs were a worthwhile project.
Uldis Tēraudkalns, the CEO of the Latvia-based fintech firm Globitex, stated that he did not “see any value added by a CBDC on top of what the euro currently provides” as the difference between transaction speeds would likely be relatively minimal for most users – and solutions like Apple Pay and Google Pay have already all but eliminated the need for cards in some areas.
“Stablecoins would solve the cross-border payments issue. CBDCs will probably merge together with stablecoins. The current system works well, but, if you don’t like that, there’s bitcoin (BTC).”
Crypto in 2021: Bitcoin To Ride The Same Wave Of Macroeconomic Problems
Fiat Will Be a Passing Fad In the History of Money – Deutsche Bank Strategist
Coronavirus Crisis Driving US Investors to Bitcoin, Survey Finds
Warning: Physical Cash Will Be Mostly Gone by the End of the Decade
Going Cashless Isn’t Straightforward. Ask Sweden, or Zimbabwe