A few days ago, Deutsche Bank published a very favourable tweet regarding digital currencies.
The thing that stood out most was the Bitcoin logo in the middle of the image attached to the tweet, which startled many bitcoiners.
To tell the truth, Deutsche Bank had already started studying and appreciating cryptocurrencies a few months ago, especially with respect to the deflating nature of bitcoin.
Many Germans, in fact, have an atavistic fear of hyperinflation, considering that in the 20s Germany was the protagonist of one of the worst hyperinflationary spirals ever, which left a deep mark on the German people.
At a time when some central banks, primarily the Fed, have decided to create large amounts of money and distribute them to the citizens, it is no coincidence that a German bank praises digital currencies.
The tweet published by the official Deutsche Bank profile reads:
“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 Marion Laboure”.
Marion Laboure, besides being Deutsche Bank’s Macro Strategist, is also one of the authors of the report published in December, which, among other things, imagined that cryptocurrencies could eventually replace fiat currencies by 2030.
In the December report, Laboure focused precisely on the digitization of money, and in particular on the fact that, while banknotes will probably resist, debit cards may disappear.
In the same report, in another section, Laboure explicitly defined cryptocurrencies as the cash of the 21st century, clearly putting Bitcoin in first place. In light of this, the choice of the image in the tweet doesn’t seem random at all.
It is possible to assume that Deutsche Bank is not only studying cryptocurrencies and central bank digital currencies (CBDCs), but that they are also embracing the advantages, starting from the more technical aspects, up to the financial ones – such as the deflationary nature of bitcoin in the long run.
It is certainly no coincidence that they have published that tweet at this very moment, precisely to warn their followers that a technological revolution is underway in the monetary field and that their point of reference is the research of Marion Laboure.