According to the chief investment Director at Deutsche Bank, blockchain technology could be a major shift in how companies conduct their business.
In his presentation at this month’s Christian Nolting and Markus Muller, the global head of the office of the CIO, explained how digital currency and the blockchain work and tried to make a prediction regarding what will happen with them in the future.
According to the presentation, “opportunities of the blockchain technology, is huge” and can be fully implemented within the next few years.
Bankers predict that approximately 10% of global gross domestic product (GDP) will be tracked or otherwise “regulated” bloccano by 2027.
We expect that the blockchain will change the business models of companies. The blockchain technology allows faster and cheaper to exchange the assets and financial products between individuals without intermediaries, which reduces information asymmetries between individuals.
Dubious prospects of cryptocurrency
While the technology is promising blockchain, cryptocurrency , according to the presentation, not so promising. The Bank klassificeret the digital currency’s “highly speculative”, given their intrinsic value or support from the Central Bank.
According to the authors of the presentation, crypto-currencies can provide an alternative Vietnam currencies, particularly in countries with high inflation, but they require more management and security to become a proper asset class.
Digital currency as a whole can develop in several possible ways, and among the main factors that can affect their growth: government intervention and competition between different currencies.
Potential hardforce, which may be new cryptocurrency also cause for concern because it can lead to inflation.
In addition, Central banks can develop their own cryptocurrency and to replace private.