Deutsche Bank: cryptocurrencies are "highly speculative"

Deutsche Bank team believes that by 2027, about 10% of world GDP will be somehow connected with blockchain
11 December 2017   1417

Chief investment specialist Christian Nolting and Deutsche Bank IT Director Markus Muller published a presentation in which they presented their views on the prospects of blocking technologies.

According to experts, the potential impact of innovative technology on the financial market is comparable in scale with the advent of the Internet.

We expect that the blockchain will change the business model of companies in a sustained way. The blockchain technology enables a faster and cheaper exchange of assets and financial products between individuals without an [intermediary], which reduces the asymmetry of information between the individuals.
 

Deutsche Bank Presentation 

In addition, bankers are confident that by 2027, about 10% of world GDP will be somehow connected with blockchain.

Nevertheless, financiers responded coolly about the crypto-currencies themselves, calling them "highly speculative", given the lack of the original value or support from the central bank.

The presentation notes that although crypto currencies can become an alternative to fiat, especially in countries with high inflation, digital money must first be assigned the status of a legal asset and create an appropriate regulatory framework.

Also, bankers expressed concerns about the hardforks used to create new crypto-currencies. In their opinion, frequent "splits" of blockchain can lead to inflation.

In addition, central banks could develop their own cryptocurrencies and replace the private ones in the market.
 

Deutsche Bank Presentation 

I worth reminding that only this year it became known about at least five new "bitcoins": forks Bitcoin Cash, Bitcoin Gold and Bitcoin Diamond have already taken place, two more - Lightning Bitcoin and Bitcoin God - are planned for the second half of December.

Binance to Launch BTC-Pegged Own Chain Based Token

In this way exchange wants to transfer crypto based on own blockchains to its ecosystem and  increase liquidity and trading volumes at Binance DEX
17 June 2019   156

In the coming days, Binance Exchange will launch a series of BEP2-tokens, tied to different cryptocurrency rates, on its own Binance Chain blockchain. The first token of this type will be BTCB - its rate is tied to Bitcoin.

BTCB is backed with bitcoins located in Binance reserves. The address for storing bitcoins has already been made publicly available, so that users can verify that the token has the necessary support.

In the future, the BTCB / BTC trading pair will be launched on Binance.com. With its help, users will be able to convert the original cryptocurrency into the Binance Chain token. The price spread in this case will be about 0.1%.

According to Binance, in this way it can transfer cryptocurrencies based on its own blockchains to its ecosystem and currently not represented in the Binance Chain. The company expects the launch of new tools to increase liquidity and trading volumes at Binance DEX.

While this approach is more centralized than atomic swaps, we believe it provides a higher degree of ease-of-use to most traders. And most traders are already trusting Binance.com to hold their funds anyway.
 

Binance Team

To date, Binance has independently reserved 9,001 BTC and released 9,001 BTCB. The BTCB / BTC trading pair on Binance.com will tentatively appear within a day, and an asset will be added to Binance DEX after approval of the relevant offer.