BTC price has surpassed $16,000 for the first time since January 2018, and Deutsche Bank believes that central bank digital currencies will replace cash

BTC price went over $16,000 for the first time since January 2018

Bitcoin last traded this high in January 2018. Over 10 days, the first cryptocurrency added more than 20% in price, and over a month it went up by 43%. At the same time, the capitalization of BTC has come close to the level of $300 billion, and the dominance of Bitcoin in the cryptocurrency market is 64.70%.

Since the beginning of the year, Bitcoin has more than doubled in price — on January 1, the asset traded at $7,200.

Deutsche Bank: digital currencies of central banks will replace cash

The bank’s research division has published a report on economic measures to assist countries affected by the coronavirus pandemic. It says the COVID-19 epidemic has accelerated the “digital money revolution.”

According to the bank, this revolution will allow CBDCs like the Chinese digital yuan or the Swedish e-krona to completely replace cash in the long run. Deutsche Bank has called on national governments and private companies to work on alternatives to credit cards.

“Worldwide lockdowns and social distancing measures have only increased the use of cards over cash. To respond, companies and policymakers must design alternative to credit cards and remove middle man fees. For now, the priority must be on regional digital payment systems. In the long term, central bank digital currencies will replace cash,” the bank’s analyst said.



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store