Breaking News

Deutsche Bank: Encrypting digital money has great potential to prevent inflation

Deutsche Bank recently released a report that the issue of encrypted digital currency is one of the best options to prevent inflation. Christian Nolting, chief investment officer at Deutsche Bank, made his own point about encrypting digital currency and blockchain, a Christian who believes that cryptocurrency has great potential in preventing inflation.
While referring to the high-risk features of investing in cryptocurrencies, such as bitcoin, ethernet, and Litecoin, Christian Nolting and CIO Global Head Markus Muller also described them as a combination of interest and risk. Despite this, both financial leaders pointed out that in order to have a more realistic sense of presence and make a gorgeous shift, the digital currency needed to be encrypted to provide strong support from the central bank.

What are the benefits of encrypting digital currencies? As cryptocurrency issuance is limited and inflation is low, it is a tool to prevent such situations. Previously, only the gold savior could fight inflation. It seems as if more and more cryptocurrencies are fulfilling this role. For citizens of heavily used domestic currency that has become worthless waste paper, cryptocurrency is their heart soothing agent.

For example, Venezuela's inflation rate was 250% in 2016 and the International Monetary Fund expects to reach 700% in 2017. In this case, the only currency that is volatile is the local currency, and cryptocurrencies, as cryptocurrencies, can provide protection for the country where the economy is hit hard. According to Christian Nolting, cryptocurrency can only be "widely accepted" only in conjunction with the central bank.

Christian Nolting said:

"Encrypting the digital currency and the blockchain technology behind it is the most disruptive innovation in the financial sector since the invention of the Internet."
Avoiding what it calls "bubble" or "scam" of cryptocurrencies, Deutsche Bank's Deutsche Bank report takes a neutral view. Christian Nolting mentioned that new cryptocurrencies, such as IOTA, have improved in stability. But the financial bull said:

"Fragmentation of cryptocurrencies and derivatives, while increasing the amount of money available, can also have an impact on the inflation rate."
The report also noted that digitally encrypted cryptocurrencies , such as recently- flamed bitcoin , ethernet, ripple, Litecoin and IOTA, are in a sense scarcity products because their currency circulation is mathematically algorithmic limits. Because of the limited circulation, no more money can be issued. However, every cryptocurrency has its own growth history.

Deutsche Bank's report emphasizes:

"Encrypting digital currencies will be a cause for further concern, especially in countries that have been hit hard by inflation because it provides a safe haven, and in addition to the use of cryptocurrencies, the blockchain has brought financial and even social change The impact will be very exciting. "