The current outbreak of coronavirus disease has significantly accelerated the development of central banks digital currencies (CBDC).
It is easy to check with the growing number of projects and the recent first official launch of digital currency in the Bahamas. Moreover, Deutsche Bank analysts say that in the long term, CBDC can replace cash.
What is CBDC? Central Bank Digital Currency is a digital form of fiat money that can be launched by central banks. Right now, the People’s Bank of China has a project of a digital renminbi. The Netherlands’ financial regulator declares its readiness to play a leading role in the development of digital currency within the Eurozone. The US Federal Reserve, Bank of England, Bank of Japan, and the European Central Bank are exploring the possibilities of applying and developing this technology.
Why now?The global pandemic has given an additional impetus to this trend. The Bank for International Settlements (BIS) announced that the coronavirus pandemic would accelerate the spread of online payments and update issues related to national digital currencies. His recent report states that COVID-19 changes the public’s attitude toward cash, even though the scientific community’s prevailing opinion is that transmission of the virus through banknotes is unlikely. Members of the US Congress have also recently called for a “digital dollar.”
Read more: https://hackernoon.com/how-cbdc-will-replace-cash-experiment-to-programmable-money-m5193z6a