The application of central bank digital currencies in various countries in the world can certainly increase economic effectiveness. However, Deutsche Bank (DB) believes there will be side effects to the further adoption of digital currency in society.
According to a report related to the latest cryptocurrency from Deutsche Bank, the global banking giant of the world exposes both the effects and the detailed risks of digital currency adoption and adaptation. This very detailed presentation focuses not only on the effect on the government, but also on the country’s economy, the central bank itself, and of course the individuals in the country.
In a report on the individual section, DB added that the Central Bank Digital Currency could result in political resistance, and lead to mass social unrest.
Economic Change and a Different World
According to DB, the use of digital currency provides a convenient solution for financial transactions. Individuals can make monetary transactions faster without the intervention of third parties. However, with the risk of failure involving one or more of the parties involved in the transaction. With the worst risk, loss of funds when a transaction failure occurs.
This digital currency issue is not an easy thing to solve. This is because, in terms of technology, banks must also be prepared for existing risks. Such as, account abuse, hacking and other crimes.
Plus, the widespread dissemination of information and the issue of adoption in the community are challenges that must also be considered.
Not only from the social side, DB also focuses on discussions related to the functionality of the currency itself. Central Bank Digital Currency must uphold its role as a medium of exchange, measure of value, and also a store of value in society.
Comfort Should Not Be Confused With Privacy
DB also continued, that the convenience of transaction services using the Central Bank’s Digital Currency should not be exchanged with the impact on the disclosure of personal information to each individual.
DB points out the potential associated with the abuse of privacy and personal information.
Moreover, the readiness to bring this technology to society is very important considering that all of this can affect the country’s economic structure.