Deutsche Bank sees the continuation of using cryptocurrencies for payments. According to the German bank, energy consumption "could hinder widespread use of cryptocurrencies and create negative press."
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The bank sees relatively low transaction speed for most cryptocurrencies compared to card providers so far.
"The only exception is Libra, which is expected to run on FastPay," Deutsche Bank wrote in the research report.
Deutsche Bank forecasts that stablecoin by Facebook could surpass Visa by fourfold in terms of transactional speed. Central banks and policymakers will have to react to this competitor by speeding up their existing research and launching pilots, the bank's analytics say.
Despite the upcoming global digitization, China will likely continue to dominate the race.
"In the long run, CBDCs will displace private cryptocurrencies and become the norm," the bank concludes.
This is not the first time the German highlights the inevitable adoption of digital currencies. In November last year, the bank said the fiat money would eventually be replaced by digital currencies as the worldwide lockdowns and social distancing measures "have only increased the use of cards over cash."
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