Govt's May Accelerate Digital Payment And CBDC Research Due to COVID-19: Bank of International Statements (BIS)

Bank of International Statements (BIS) recently released a research report on the effect of the COVID-19 pandemic to the overall payment system. According to the research, the virus is causing fear and uncertainty as physical cash sees a dip in usage in favor of digital payments. Additionally, the report from BIS states there may be an acceleration in the development of government-backed digital currencies such as central banks CBDCs.

Public fears cash over COVID-19 pandemic

In the third bulletin of BIS titled, “COVID-19, Cash, and the Future of Payments” the bank highlighted the growing fear of the use of physical cash, despite scientific evidence of low chances of contracting Coronavirus through cash. This growing fear may set in a rush across governments in the quest to develop CBDCs and other digital forms of payments, the report further states.

“Looking ahead, developments could speed up the shift toward digital payments. […]The pandemic may amplify calls to defend the role of cash – but also calls for central bank digital currencies.”

However, with half of the world lacking these digital payments, a sudden shift to such payment systems may set a divide especially in these times of the pandemic. The researchers said,

“If cash is not generally accepted as a means of payment, this could open a ‘payments divide’ between those with access to digital payments and those without.

This could open a divide in access to payments instruments, which could negatively impact unbanked and older consumers.”

A broader look into digital payments

Governments across the world including Asia, Africa, the Americas, and Europe have started embracing digital payments on mobile phones and digital currencies. The U.S government stimulus bill proposed a digital ecosystem to disburse the funds to millions of Americans.

Argentinian governor, Jorge Capitanich of Chaco province, urged the use of digital payment systems across his state to phase out the use of physical fiat money during an internet call with the President, Alberto Fernández

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,428FansLike
2,795FollowersFollow
4,177FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

The Mysterious Entity that Caused the Bitcoin Network fees to Jump 146% in May

Bitcoin price has yet again taken a dive to $8,800, recording a drop of 4%. Meanwhile, Network Demand Score which is a metric incorporating network...

Ledger and Trezor Crypto Wallets Dismiss ‘Rumored’ Hack Through a Shopify Exploit

A hacker has allegedly compromised the databases of Ledger, Trezor, Keepkey and Shapeshift hard wallets in a Shopify exploit. These storages are considered to...

Tulip Trust Addresses are Used by Someone to Sign “Craig Wright is a Liar and a Fraud”

Some of the addresses that Craig Wright, who claims himself to be the pseudo-anonymous bitcoin creator Satoshi Nakamoto, has filed in the ongoing court...

Bitcoin Market Outlook: A Long Game Looking Bearish in the Short Term

Last week, the price of bitcoin dropped below $9,000 and has been trading under $9,300 throughout the week. On the weekend, we yet again dropped...

Institutional Investors Are Scooping Up All the Newly Minted BTC, Leaving Not Much Left to Buy

Over the last three months, Grayscale Investments bought up to 33% of all newly minted bitcoin. The asset manager continues to stockpile the world’s leading...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today