Bitcoin-influenced banking industry: Deutsche Bank to lay off 18,000 people!

Bitcoin-influenced banking industry: Deutsche Bank to lay off 18,000 people!

Bitcoin-influenced banking industry: Deutsche Bank to lay off 18,000 people!

Throughout history, the banking industry has always faced various risks, but somehow it has survived for more than three thousand years. But now the traditional banking industry is under more threat due to geopolitical uncertainty and, most importantly, the emergence of new technologies including artificial intelligence and Bitcoin. As a result, giant banks like Deutsche Bank took action to radically change their business models.

New technologies have already corrupted existing banking and financial systems. Some banks are taking hard steps to survive by trying to keep up with the improvement. The latest example came from Deutsche Bank.

Germany’s Largest Bank

The management of Germany’s largest bank in terms of turnover and number of employees is aware that digitalization is rising and cannot be avoided. Therefore, on July 7, 2019, 150 years after Deutsche Bank CEO Christian Sewing was founded, he admitted that the foundations must be rebuilt in order to survive.

The restructuring will be successful only if the infrastructure is radically changed, Sewing said.

To achieve this transformation, Deutsche Bank plans, among other things, to invest 13 billion euros in technology by 2022. In this context, the most radical decision of the bank was to dismiss 18,000 employees.

Banks have always faced risks such as loans, liquidity and interest rates. Significant problems can arise if a bank faces too many liabilities and does not have enough money to meet these obligations when due.

Moreover, geopolitical uncertainties can trigger a major financial crisis. Deutsche Bank estimates that the impact of the US-China trade war has led to the withdrawal of US $ 5 trillion from the financial market.

States often want to save large banks, especially during the crisis. During the 2008 economic crisis, the theory of büyük too big to lose ”was implemented with a systematic policy. The theory of büyük too big to lose ileri suggests that some companies, especially financial institutions, are very large and interconnected, that their failure will result in greater economic catastrophe and should be supported by the state.

But now the banking industry faces a bigger threat: the fact that your Bitcoin wallet is your bank… Christine Lagarde, the head of the International Monetary Fund (IMF), has already rang the alarm bell. Lagarde made statements to CNBC in April 2019 and said crypto currencies and financial technology developments are clearly threatening and shaking the banking system.

Probably, many banks will undergo restructuring in the future as Deutsche Bank does and will begin to reduce their workforce. However, in an economic or banking crisis that may occur this time, Bitcoin has the potential to prevent the crisis. People can turn to Bitcoin, which they can keep as a real, strong value store and use it for payments.

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About Viktor Sokolov 132 Articles
Nerd, entrepreneur & coffee aficionado. Believes that blockchain infrastructure and bitcoin will be the money system of the coming decades. Trying to make visible what this means for technology, economy, companies and societies.

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