CBDCs could incite social unrest, according to the German banking giant Deutsche Bank.

Implementation of a CBDC could, in a worst-case scenario, attract political resistance and, possibly, encourage social unrest, according to German banking giant Deutsche Bank.

In its new report about cryptocurrencies, the German banking giant has discussed central bank digital currencies (CBDCs) in great detail, and their effect on central banks, individuals, and governments. In the discussion about individuals, the banking giant says that CBDCs could encounter political resistance and encourage social unrest. The bank also observed that CBDCs could put users in a sweet spot with payments. Individuals stand to experience faster monetary transactions without third party interference.


“CBDCs must be efficient and ‘cash-like’ to overcome skepticism.” 

In it’s latest CIO Special report, German banking heavyweight Deutsche Bank made several points about CBDCs. The bank said that depending on the CBDC technology used, and money transfers could be anonymous and completely decentralized – as, ironically, old-fashioned cash transactions are now. The German bank further noted that central bank-backed digital currencies need to make their use case scenario much more appealing than conventional cash. According to the bank, CBDCs must be efficient and ‘cash-like’ to overcome skepticism amongst potential users. 

Deutsche Bank mentioned that the currency should serve as a medium of exchange, as a measurement of value, and as a store of value. Payments need to be secure and simple. Universal access has to be guaranteed.


There could be a trade-off between privacy and convenience.

In its report, the German bank said that moving forward in its discussion of the impact of central bank digital currencies (CBDC) on individuals, DB pointed out potential issues pertaining to privacy and convenience in usage. As per available data, privacy loopholes don’t mean much for young folks. Deutsche Bank notes that this is a crucial question that needs addressing because, according to its previous research surveys, individuals are still skeptical about cashless payments. Especially in western European countries like Germany.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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