Deutsche Bank, the largest banking institution in Germany, believes central bank digital currencies will replace cash in the future.
In a recent report titled, “What We Must Do to Rebuild,” the bank’s research arm, Deutsche Bank Research, discussed economic estimations and proposals to assist global economies hit by the coronavirus pandemic, according to a report in CoinTelegraph.
In the report, Deutsche Bank stated that the ongoing COVID-19 pandemic has accelerated the “digital cash revolution.”
According to the bank, this revolution will eventually enable CBDCs like China’s digital yuan or Sweden’s e-krona to replace cash in the long term.
Deutsche Bank called on national governments and private companies to work on alternatives to credit cards.
A statement released by the bank said: “Worldwide lockdowns and social distancing measures have only increased the use of cards over cash. To respond, companies and policymakers must design alternative to credit cards and remove middle man fees.
For now, the priority must be on regional digital payment systems. In the long term, central bank digital currencies will replace cash.”