The German Deutsche Bank has become the next major bank to show interest in the crypto world. Following the recent announcements from the oldest US bank, BNY New York Mellon and, South East Asia’s DBS bank.
In an overlooked report from December 2020 by the World Economic Forum (Page 23) plans for a “digital asset custody platform” were laid out by Deutsche Bank. These plans would see a bridge between the gap in traditional banking and digital assets.
This news comes just as the Bank has announced 18 thousand job cuts by 2022. CEO Christian Sewing laid out a brief to his staff. Stating that “rebuilding will, however, only be successful if we fundamentally reshape our infrastructure”. Thus hinting at the fact they’ve got some big changes planned to save themselves from financial ruin.
The Crypto world is shaking up the traditional banking that most are used to however this mass cut in staff is down to a US/China Trade war that Deutsche Bank predicts has obliterated 5 trillion USD from the financial market.
A surely promising statement for the future of banking and digital currency implementation. The German bank plans are now only in their “initial” phases; reportedly only offering digital custody but there are plans that tokenization and trading will swiftly follow.
When is this set to happen?
There is still no set deadline announced however Deutsche Bank has said it will release its platform in stages starting sometime in 2021. The banks’ digital asset services are still just a “prototype” but the bank also says it will provide “value-added services such as taxation, valuation services, fund administration, lending, staking, and voting. It will also provide an open-banking platform to allow onboarding of third-party providers.”
The lack of any real news doesn’t mean the rest of the world isn’t speculating as to what this will mean for their current holdings.
DB and Bitcoin…
Bitcoin has the biggest presence in terms of references on the banks’ website but we all know this doesn’t mean it’s going to put all its eggs in one basket.
Most of us have been priced out of owning a Bitcoin missing the opportunity to jump on at an early stage. This doesn’t mean the big boys won’t be out to play; Tesla laid out a cool $1.5billion dollars this week!
According to analysts at the Germany-based Deutsche Bank, Bitcoin’s appeal as an alternative store of value asset is strengthening!
Jim Reid head of global fundamental credit strategy at Deutsche Bank believes “There seems to be an increasing demand to use bitcoin where gold used to be used to hedge dollar risk, inflation, and other things”.
As Bitcoin has a limited and predictable supply it is often considered by its supporters as ‘digital gold’. Going by BNY Mellon’s approach we’ll see Deutsch Bank storing Bitcoin for its clients very soon!
Roll out the Alt-Coins!
Already boasting some of the world’s most used stable coins Algorand is a fine option for banks. It can currently process 1000 transactions per second which will be enhanced to 46000 in the coming months.
Another big obstacle for the banks is finality, how quickly can the tranasction actually be completed and logged end to end? Algorand can do this in 2.5 seconds. This is a amazing speed when you consider that Ethereum takes 2.5 minutes.
Algorand has all the tech in place it’s now down to the banks to decide if they wish to use it.
In September last year, the Bank suggested it was “assessing” the use of IOTA tech to drive innovation in the financial sectors. IOTA has many use cases but in the banking sector, it could be used to facilitate machine-to-machine (M2M) economics and internet of things (IoT) payments.
IOTA’s TANGLE is currently being implemented in E-commerce, Energy Sector, and the automotive industry. I know I’ll personally be holding some IOTA this year!
XLM is another choice that has been touted by the Crypto community, Stellar boasts transaction speeds of 2-5 seconds. It has a transaction fee of 0.00001 XLM making it a strong contender.
Deutsche Bank is not the first to make statements about crypto usages and it certainly won’t be the last! Stay tuned for more!
If you are a worker at Deutsche Bank, we at findmeacrypto.com stand in solidarity with you! If you would like drop us a comment below feel free to do so!