Deutsche Bank Says Bitcoin Could No Longer Be Ignored
- Deutsche Bank’s report says “bitcoin is now too important to ignore”
- The research predicts central banks and governments will regulate bitcoin soon
Deutsche Bank Gets Vocal on Bitcoin
Deutsche Bank, a German multinational investment bank, is another large player in the financial industry to get vocal regarding the bitcoin revolution that has been sweeping the markets for the past several months.
Deutsche Bank’s stand on the cryptocurrency market and bitcoin, in particular, was revealed in its latest report “The Future of Payments: Series 2”. In the 19-page research, the investment bank has given its views and estimations on Bitcoin. The research talks about Bitcoin’s characteristics and key functions that have been driving its valuations to stratospheric levels.
“Bitcoin’s market cap of $1 trillion makes it too important to ignore,” the opening statement says. As long as asset managers and companies continue to enter the market, Bitcoin prices could continue to rise.”
Bitcoin is Here to Stay
The global investment giant also notes that bitcoin, in terms of total currency in circulation, “is one of the major currencies in the world, after the US dollar and the euro”. The report goes on to compare that in early 2019, Bitcoin represented only 3% of total US dollars in circulation, while in February 2021, bitcoin accounted for over 40% of the US dollars in circulation.
On the topic of governmental acceptance and central bank oversight of bitcoin, the Deutsche Bank Research subsidiary expects regulatory requirements to be introduced in order for bitcoin to continue its way towards mainstream adoption. “Central banks and governments understand that cryptocurrencies are here to stay, so they are expected to start regulating crypto-assets late this year or early next year.”
Deutsche Bank’s opinion over the future appreciation of the digital asset does not provide any substantial insight or differ from bitcoin’s current behavior. “Bitcoin is here to stay and its value will remain volatile,” the report says. In the long term, however, the study expects central banks to stand firm against giving bitcoin a share in the traditional financial system. “In the long run, central banks are unlikely to give up their monopolies. And as long as governments and central banks exist and hold the power to regulate money, there will be little room for bitcoin—as a means of payment—to replace traditional currencies.”