Deutsche Bank Pointed to "Huge" Opportunities of the Blockchain
December 14, 2017
"Blockchain technology can significantly change the way business is done by many large companies."
Such a statement was made by Christian Nolting, a global head of wealth at Germany's largest bank Deutsche Bank.
The other day, Nolting and his colleague, global head of the bank's CIO office Marcus Müller, made a presentation to describe functioning of the cryptocurrency and blockchain, as well as these technologies' possible future.
The presentation states that "Blockchain has ample opportunities", but the implementation of these opportunities will be available only in a few years.
Deutsche Bank's representatives suggested that by 2027 about 10% of the world's gross domestic product will have been controlled or regulated by blockchain solutions.
The presentation said:
"Blockchain is capable to sufficiently change companies' business models. This technology allows you to carry out the exchange of assets and financial products between individuals cheaply, efficiently and directly."
It was quite predictable that against the background of enumerating positive aspects of applying the distributed ledger technology in financial structures, the bank's representatives recognized cryptocurrencies based on it as "objects of high speculation", while admitting their intrinsic value - Nolting and Müller regard cryptocurrencies as a good solution for countries with unstable economies. They also added that in order to increase their significance the digital currencies should be subject to regulation.
In the speakers' opinion, cryprocurrencies' hardforks are also a cause for concern, since their introduction can cause inflation. Among other things, the representatives of the German bank supported the ideas of international central banks on the creation of state-owned cryptocurrencies.
Earlier Deutsche Bank published a list of the main financial threats of the coming year. Along with the situation in North Korea, Brexit and the election of the "new" president in Russia, the bank also mentioned Bitcoin. Also, it should be noted that a month before, in November, the bank' strategist Jim Reid said that against the background of developing cryptocurrencies traditional money may lose its value.