Bitcoin's (EXANTE: Bitcoin) value will continue to develop depending on what people believe it is worth, Yahoo reports, citing Marion Labouré, Economist at Deutsche Bank. According to Laboure, bitcoin is the brightest example of the Tinkerbell effect. She also notes that the cryptocurrency will likely remain "ultra-volatile" due to its limited tradability.
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"The root causes of bitcoin's volatility include small tactical asset allocations and the entries and exits of large asset managers," Labouré added.
The Deutsche Bank economist says it is "clear" that China's recent actions are targeted to support the launch of its digital currency (CBDC). She also believes that other governments will also jump to protect their fiscal monopoly like China did.
As iHodl earlier reported, the Germany's largest bank is working on its own cryptocurrency custodian. According to a report by the World Economic Forum, the Deutsche Bank Digital Asset Custody is currently in a proof of concept status.
The German bank reportedly wants to develop a"fully integrated custody platform for institutional clients and their digital assets." However, the bank plans not only provide custodian services, but also integrate the buy and sell feature of cryptocurrencies through a partnership with prime brokers. The bank will charge custody, tokenization, and trading fees.
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