Deutsche Bank Cuts Down 18,000 Jobs, Bitcoin (BTC) offers a “Plan ฿”

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Deutsch Bank cuts off 18,000 jobs, sending almost 20,000 employees home. This paints a miserable image of traditional finance at the time of crypto’s booming growth.

According to the report of Reuters last July 7, the momentous decision of the Deutsch Bank will require the bank to exit its trading sales and equities sales, which reportedly had raked €1.96 billion (or $2.20 billion) worth of revenue last 2018.

Reuters also reported that while DB retains a small scale equity capital markets venture, they also plan to bridle in their fixed-income business, specifically, their rates trading desks.

The move is expected to bring down approximately 18,000 jobs, as well as 40% decrease in risk-weighted assets that are presently allocated in trading operations of DB – representing €74 billion, and €288 billion of leverage exposure as of December 31, 2018.

On July 7, Anthony Pompliano, co-founder of Morgan-Creek Digital Assets, interpreted the news in a Twitter post as a strong endorsement for BTC adoption. He stated:

DB plans to lay-off approximately 20,000 employees. BTC has no employees to fire. DB was built for the old world. And BTC was built for the new world.”

Mati Greenspan, an eToro analyst, made his own analysis of the unwell banking sector. He proposed that Deutsch Bank’s move signifies a wider policy failure by the overseers of the international monetary policy. He noted:

“This is the result of an extended 0% interest rate policy. Central banks make turning a profit impossible for investment banks. Even the riskiest bonds yield less than 2%. How can they be expected to have revenues from that?

The opinion of Greenspan has echoed in rolling news from The Guardian, a major UK broadsheet, which also points to Deutsch Bank’s burden with billion euros worth of derivative contracts. Many of this would be allegedly turned over to its newly-made “bad bank,” which is a Capital Release Unit, tasked to manage DB’s wind-blown investment banking assets.

Additionally, DB’s head for international fundamental credit strategy Jim Reid stated that the dovish policies of central banks were impacting positively the alternative currencies like BTC while damaging investment banks. He noted:

If central banks are going to be this aggressive, alternative currencies starts to be a bit more attractive.”

In relevance to the news, Gabor Gurbacs, MVIS director and VanECK digital asset strategist has said in a tweet:

Cryptocurrency markets at least are open 24/7 to respond on news. In the traditional market, some just have to wait till the market open in order to get hammered on news that was public information. For me, this seems to be a serious market structure issue! It is time for plan ฿!”

Many views the revelation of DB as an avoidable and delayed wake-up to the result of the 2008 crash, which is the main catastrophe that Satoshi ironically referred to within the Genesis block of BTC over a decade ago.

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