The central bank of the Federal Republic of Germany, the Deutsche Bundesbank, believes all central banks must pay attention in introducing digital currencies that could potentially "destabilize the financial system during times of crisis," Reuters reported.
Bundesbank President Jens Weidmann claims easy access to digital assets may exacerbate financial institution runs in times of crises, leading to "a faster collapse of lenders, and that even in good times it would fundamentally change the business model of banks."
In addition to that, according to Reuters, the Head of the Deutsche Bundesbank also expressed concern that easy access could increase volatility in demand for digital money.
Last year, Germany's government said in a response to a parliamentary inquiry posed by right-wing political party Alternative for Germany, that "cryptocurrencies take up too small an amount of market cap to make any sort of special regulatory action necessary."
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