Is Blockchain and Crypto The Reason For Massive Deutsche Bank Job Cuts?
The European investment financial institution,
Deutsche Bank, is exiting from its equity sales and trading businesses. This is
in a bid to increase profitability. Consequently, the bank is slashing 18,000
jobs as per a Bloomberg report.
The bank’s equities arm has posted a €2.8 billion Q2 2019 loss necessitating
the cut of its workforce by a fifth.
In the bank’s statement made on Sunday, Christian Sewing its Chief Executive Officer said:
“Today we have announced the most fundamental transformation of Deutsche Bank in decades. We are tackling what is necessary to unleash our true potential”.
The bank has consequently shelved the paying of
dividends in 2019 and 2020. Additionally, there will be a €4 billion investment
done to improve its controls by 2022 as part of its restructuring measures.
Blockchain and Crypto Solutions Can Make
The bank’s governance has largely been blamed for the tragic turn of events. The institution’s costs have been excessively high while its revenues have been low. Crypto analysts believe that the current turn of events at the Deutsche Bank could have been mitigated through the adoption of blockchain technology.
The bank is not new to cryptocurrencies and
blockchain technology. First, it is rooted in one of the largest crypto hubs in
Europe. Germans have always had a leading role when it comes to technology and
industry. They have not treated blockchain and digital assets any differently.
The German government is exceedingly supportive of digital currencies and has very friendly crypto tax regulations. The land of Oktoberfest is building up a comprehensive blockchain strategy for the future. The government has invited many FinTech startups to design blockchain solutions that can be used to strengthen the country’s economy.
Germany Is Europe’s Largest
Blockchain and Crypto Hub
Blockchain innovators in what is Europe’s largest
economy have already applied blockchain to the pharmaceutical companies,
energy, and the auto industry. The German Ministry of Finance has also
announced that it will not tax Bitcoin users. Consequently, the government
regards the digital asset as legal tender for tax purposes.
The government has, consequently, been viewed as the pacesetter for other EU economies when it comes to digital assets treatment and acceptance. The German youth is also very bullish for crypto. As an illustration, a survey done by Hesse and Saxony in 2018, shows that 28 percent of Germans in the 18 to 29 years range have an interest in the purchase of cryptocurrencies.
Berlin is also home to over 170 tech hubs
researching on blockchain uses. The nation has therefore not just been a
success story in economics and industry but in blockchain development as well.
The one step, consequently that could change the fortunes of the Deutsche Bank could simply lie in blockchain solutions as Ripple. Examples can be drawn from SWIFT. To stay competitive, SWIFT is innovating and adopting blockchain.
SWIFT has for ages been burdened with a slow and expensive network, that would take days to settle payments. Meanwhile, Ripple’s xRapid has assisted banks with on-demand liquidity when facilitating settlements.
Incorporating with any of Ripple’s financial solutions for banks in any of their wing, the beleaguered European investment bank would practically, as demonstrations have revealed, have higher revenues and fewer costs of operations. This would transform its working experience and give it competitiveness thereby preventing laying off staff.