Deutsche Bank says: CBDC - Reality Check Needed
Deutsche Bank report says: CBDC - Reality Check Needed.
A report by Deutsche Bank Wealth Management's head investment office (CIO) says that before discussing the use and widespread adoption of central bank digital currencies (CBDCs), reality needs to be checked.
The first step is to tackle several major interrelated problems. And there are many problems associated with the implementation of CBDC. First, how to ensure their compatibility with existing infrastructure and processes. The more real issue is that CBDC has yet to undergo extensive empirical testing and it is unclear what impact it will have on the capital market in the short term and the reliability of the system in the event of a market crisis or collapse. The blockchain-based data processing engine and transaction speed has not proven powerful enough for large-scale deployments. The reason CBDC has not been implemented on a large scale is that it is unclear what will happen when the CBDC works with the traditional monetary system.