The growing fear of cash for the contagion risk of the new corona virus could benefit the central bank’s digital currencies
A recent bulletin submitted by the Bank for International Settlements (BIS) explains that the different reserves and fears of physical money, which serves as a means of spreading the new corona virus (Covid-19), could generate demand for digital currencies drives issued by central banks known as CBDC
The world crisis through the Covid-19, maintains a climate of insecurity in a variety of countries that reinforces efforts to contain as much as possible the spread of the new corona virus.
With that in mind, in addition to the economic concerns created by the global pandemic, Cash as a mechanism of spread and infection can mean a change in payment habits that This would give digital payments and CBDCs a bigger boost.
Despite the fact that the risk of infection from physical money is said to be low compared to other objects, the IDBafter a report from The blocksays:
A realistic assessment of the risks associated with a cash transfer is particularly important, since a cash withdrawal can result in distribution consequences. If cash is not widely accepted as a form of payment, it can lead to “payment differences” between people with access to digital payments and people without access. This in turn could have a particularly strong impact on non-bank consumers and older consumers.
The bulletin also explains this in such a scenario “Fail-safe and accessible central bank-operated payment infrastructure, including CBDCs, could quickly become more important.”while you add that “In the context of the current crisis, CBDCs in particular should be designed so that access options for unbanked and (contactless) technical interfaces are possible that are suitable for the entire population.”.
Finally, the variety of threats payments and their resistance can increase CBDC before the pandemic in a “Sharpest focus”, Details of the institution. No country currently has detailed short-term launch plans that go beyond efforts China with the digital yuanHowever, the changing world panorama could help many to deepen their interest or take further initiatives in this regard.
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