In the context of the spread of the COVID-19 pandemic, world governments and central banks should focus on the launch of CBDCs, suggested a BIS report. Using digital currencies, people could avoid cash, credit card terminals or PIN pads, which could transmit the new virus.
Coronavirus and Money
The COVID-19 epidemic has taken the world by storm. Over 1,2 million confirmed cases and 65.000 deaths since the beginning of the year. What is even more threatening is the speed with which the virus spreads.
Some reports suggest that paper cash could also transfer it. Several governments have taken precautionary measures by quarantining, disinfecting and even destroying banknotes.
The large international institution BIS - Bank for International Settlements - has recently drawn up a report on this aspect. The report reaffirms the growing fears among people: “Central banks report a sharp increase in media demands on the security of cash use. The number of Internet searches related to both "money" and "virus" is at the highest level. "
The document also refers to some studies that claim that forms of viruses, bacteria, fungi and parasites can survive relatively long on banknotes and coins. 2020 research revealed that COVID-19 could survive for three hours in the air, 24 hours on cardboard and even more on other hard surfaces.
Scientists concluded that the probability of transmitting coronavirus via banknotes is low compared to other frequently touched objects. For example, most contaminated objects can be credit cards or PIN pads: “The fact that the virus survives better on non-porous materials, such as plastic or stainless steel, means that also the terminals of debit or credit cards or PIN pads can transmit the virus. "
Are CBDCs the solution?
A previous BIS report pointed out that 80% of central banks use most users for invest, is currently developing a project for a Central Bank Digital Currency (CBDC). The new coronavirus has made CBDCs a potential solution to avoid touching physical subjects when working with money.
According to the article, this digital currency should have several characterizing qualities to cope with the current situation in the world: “The support infrastructures should resist a wide range of shocks, including pandemics and cyber attacks.
In the context of the current crisis, the CBDC should, in particular, be designed, allowing access options for non-open and (contactless) technical interfaces suitable for the whole population.
The pandemic can therefore focus more on CBDC requests, highlighting the value of having access to different means of payment and the need for any means of payment to be resistant to a wide range of threats. "
And you use your cards safely? Do you take all possible precautions? Let us know what you think in the comments below about these new solutions and suggestions for improving a situation that affects us all.