As the world records more than one million confirmed cases of the novel Coronavirus, the German multinational investment bank, Deutsche Bank (DB), sees a strong need for a cashless society during this pandemic time.
Current Flaws With Physical Money
The use of physical cash potentially poses the risk of spreading the virus, especially dirty banknotes, according to the World Health Organization (WHO). In line with the warning, the central bank of South Korea began quarantining banknotes and even went on to destroy some notes to curb the spread of COVID-19 in the country.
In a tweet during the weekend, the Deutsche Bank stated that this current issue with banknotes will drive the adoption of digital cash. Notably, digital money is a critical solution to monetary transactions as it is contactless, and can never spread the virus.
“A once-in-a-century pathogen demands once-in-a-century solutions. An obvious place to start is to accelerate the inevitable shift toward #digitalcash,” the bank added.
Bitcoin Placed in The Center of All Currency
Interestingly, while calling for the digital version of popular fiat currencies, such as the United States dollar (USD), Euro, Yuan, etc., the German bank placed Bitcoin (BTC) at the center of all other currencies, which somewhat gives the cryptocurrency a first-hand recommendation.
The COVID-19 pandemic is accelerating the rise of central bank #digitalcurrencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards #digitalcash according to our #dbresearch colleague @MarionLaboure pic.twitter.com/TnotaTKouK
— Deutsche Bank (@DeutscheBank) April 3, 2020
Placing Bitcoin in the center, among other currencies, is somewhat bullish, and many people think it means one thing. While countries might strive to develop digital versions of fiat currencies, Bitcoin will remain a standard.
Additionally, Deutsche Bank relayed a considerable opportunity for central bank-issued digital currency (CBDC), since central banks need digital currencies which they can handle. Bitcoin cannot be managed by any government or authority since it is decentralized.
DB: Fiat Would Be Dead by 2030
Deutsche Bank seems to be a big fan of digital currencies. In December 2019, the bank said that digital currencies are the future of money, and they will eventually dominate fiat currencies in the next ten years, 2030.
The forces backing the traditional currencies are slowly falling apart, which will result at the end of physical cash, according to the German bank. The potential to replace some money by crypto continues to grow as they overcome regulatory hurdles.