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    Central bank digital currencies (CBDCs) and cryptocurrencies are gaining traction as alternatives to traditional cash payments. According to a Deutsche Bank survey, 20% of consumers believe CBDCs will become mainstream. Emerging economies have already launched several CBDCs, and the European Central Bank will decide next month whether to pilot a digital euro. While cryptocurrencies like Bitcoin saw dramatic volatility in 2022, their market capitalization has rebounded to $1.1 trillion as institutional investors enter the market. However, over 58% of respondents in several countries believe that cash will always have a role as an anonymous, secure, and convenient payment method.

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    Central bank digital currencies (CBDCs) and cryptocurrencies are gaining traction as alternatives to traditional cash payments. According to a Deutsche Bank survey, 20% of consumers believe CBDCs will become mainstream. Emerging economies have already launched several CBDCs, and the European Central Bank will decide next month whether to pilot a digital euro. While cryptocurrencies like Bitcoin saw dramatic volatility in 2022, their market capitalization has rebounded to $1.1 trillion as institutional investors enter the market. However, over 58% of respondents in several countries believe that cash will always have a role as an anonymous, secure, and convenient payment method.

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    14 views1 page

    The Future of Money

    Uploaded by

    Aku La
    Central bank digital currencies (CBDCs) and cryptocurrencies are gaining traction as alternatives to traditional cash payments. According to a Deutsche Bank survey, 20% of consumers believe CBDCs will become mainstream. Emerging economies have already launched several CBDCs, and the European Central Bank will decide next month whether to pilot a digital euro. While cryptocurrencies like Bitcoin saw dramatic volatility in 2022, their market capitalization has rebounded to $1.1 trillion as institutional investors enter the market. However, over 58% of respondents in several countries believe that cash will always have a role as an anonymous, secure, and convenient payment method.

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    of 1

    Deutsche Bank

    Research

    The Future of Money


    #PositiveImpact

    The past decade has challenged our understanding of money


    Marion Laboure, Ph.D.
    as payment alternatives and new forms of currency entered Research Analyst
    our everyday lives. Digital assets such as Bitcoin have
    captured the spotlight, but we believe it will be central bank Cassidy Ainsworth-Grace
    Research Analyst
    digital currencies (CBDCs) that will prevail. And yet, even as
    the transition to digital payments continues, cash does not
    face extinction.

    CBDCs look set to become a conventional payment method. Cash remains king but the rising trend of digital
    Our proprietary survey revealed that a fifth of consumers payments was accelerated by four to five years due to
    think CBDCs will be mainstream. It would seem that it is no the covid pandemic. Even cash-loving countries are
    longer a question of if but when the CBDC economic rocket joining in. Japan's currency in circulation declined 2.9%
    takes off. Emerging economies are leading the way, with over the first two quarters of 2023. Despite this, cash
    four live CBDCs already in operation. Advanced economies continues to play an essential role as an anonymous,
    are also making progress. Indeed, the European Central secure, and convenient payment method. Over 58% of
    Bank will decide whether to proceed with a digital euro individuals in our proprietary survey believe cash will
    pilot scheme next month, which could set the tone for other always be around. It may be a dinosaur, but cash does
    developed nations. not face extinction.

    Cryptocurrencies. Bitcoin and Ethereum have outperformed Cash will always be around
    traditional assets this year, despite setbacks over the past Agree Disagree Neither agree or disagree
    18 months. Bitcoin’s value has risen and fallen, and will 100%
    probably continue to do so, depending on what people
    believe it is worth. This has been described as 'the Tinkerbell 80%
    effect’, as belief shapes reality or, in this case, value.
    Last year's collapse of stablecoin TerraUSD and crypto 60%
    exchange FTX highlighted the structural issues within the
    crypto ecosystem, namely, insufficient reserves, conflict of 40%
    interests, and a lack of regulation. Faith was lost, and the
    crypto market contracted from $2.9trn in November 2021 20%
    to $830bn by December 2022. The Tinkerbell effect has
    now returned, and the market has recovered to $1.1trn. New 0%
    institutional players have also entered the market, including US UK France Germany Italy
    BlackRock and Deutsche Bank. Source: Deutsche Bank, dbDIG. Note: percentage of respondents who think that cash
    will always be around. Survey ran September 2023 for all countries except for the US.
    Market capitalisation of selected rypto assets (USD US survey ran December 2022. *Excludes the US.

    trns)
    3 Bitcoin Ethereum Stablecoins Other
    Clients of Deutsche Bank can access the full chartbooks
    below:
    2
    Part 1: Crypto: The return of faith, trust, and fairy dust
    USD trns

    Part 2: CBDCs–The Economic Rocket Takes Off


    1

    Part 3: Forget Extinction, Cash the Dinosaur will Survive


    0
    2019 2020 2021 2022 2023
    Source: Deutsche Bank, Haver Analytics. Updated 28 September.

    For important disclosure information please see: https://research.db.com/Research/Disclosures/Disclaimer

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