Given these challenges, the more straightforward approach which would allow non-banks to convert bank deposits directly into DBM at a rate of 1 to 1 may therefore appear more attractive, provided that non-banks mainly substitute cash rather than bank deposits with DBM. As long as DBM mainly replaces cash, negative side effects of DBM might be unlikely.
Quite simply, this has meant less international trade. Even so, China’s imports of many commodities continue to grow at double-digit rates. So, we have reason to expect global trade to grow more slowly than in the past: first, because global investment spending is in a lull, and second, because China’s economy is restructuring toward more domestic consumption and less trade.