BIS: Johannes Beermann: Cash and digital currencies from a central bank's perspective

22 November 2019

Keynote by Dr Johannes Beermann, Member of the Executive Board of the Deutsche Bundesbank, at the Payment Asia Summit, in which he shares his view on current trends in cash management as well as the impact of digital currencies on the “world of payments.”

The old world of payments versus the new world.  This story is not new. At the turn of the millennium, there was a strong admiration for what was referred to as the new economy in Germany: 

• New economy was a term used to describe internet start-ups which often relied on little physical capital to generate, at times, staggering market valuations. 
• This was in contrast to the old economy. Think of brick-and-mortar car plants with, in some cases, considerable overheads.

Mr Beerman says:

“At this point, we can say that "the new has become a bit old and the old has become a bit new". Economic structures have integrated. The basic market forces still apply: the companies that survive are those that are competitive and offer a unique product.

“I view the world of payments in very much that spirit. To me, digital payments offer exciting prospects. But that does not necessarily imply the extinction of existing payment methods. It may very well actually increase the diversity of payment methods.

“Cash offers these unique forms of independence from social and electronic networks, which suggests to me that it will continue to enjoy great popularity in the euro area.”

Full speech on BIS

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