Digital currency threatens to squeeze bank payment activity. But banks in some countries, Germany in particular, are looking to carve out B2B payments as their segment for bank deposit tokens. The plan is to mint the commercial bank money tokens directly onto private and public DLT networks instead of the bank’s own network.
In Europe, the ECB has prioritized its digital euro central bank digital currency (CBDC) use cases, with consumer payments receiving the focus and little mention of B2B payments. Hence, it leaves this opportunity wide open to commercial banks.
To counter the perception that banks are being squeezed, it’s worth highlighting that B2B is the largest payments segment globally. In 2018 Goldman Sachs estimate B2B payments at $127 trillion. More recently, Credit Suisse pegged B2B payments at $125 trillion out of a $235 trillion total market.
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