The world has changed by 360 degrees in a few months. What we all experience was seen only in movies and was unimaginable for us.
However, as it is said, everything is happening for something, and ultimately it may not be just the negative aspects that will remain after this storm called Coronavirus.
If the digital currencies were under criticism a year ago, today every world economy and all the banks of the world are interested. Everyone is aware that physical money in the current crisis will cause problems and people need to ensure deposits and withdrawals without personal contact.
Physical money will be a thing of the past, and we will soon see a Revolution called “Digital Currency”.
Let’s look at the specific facts:
Korea
The Central Bank of Korea said today that it has launched a pilot program to create a virtual environment and to check the functioning of the central bank’s digital currency.
The design, technical review, business process analysis and consultation will be held by the end of December this year, if it succeeds, real distribution of the digital currency will begin next year.
Source: Seoul = Yonhap News
China
China and Alipay have issued several digital currency patents since the beginning of the year and the readiness of the digital Chinese currency is almost complete.
More in the article: China is already close to the release of its own Digital Currency
USA
The initial lack of interest on the part of the US has changed over the course of a few months, and last month we were already watching the bill mentioning the “digital dollar”.
Senator Sherrod Brown fought very hard to make the digital dollar part of the third package of economic incentives and made several suggestions that supported inclusion in everyday life.
More in the article: Bad Economic Forecast
France
March 27 French bank released a call for applications called “CENTRAL BANK DIGITAL CURRENCY EXPERIMENTS WITH THE BANQUE DE FRANCE”
The Banque de France has thus begun to experiment and test the integration of the CBDC digital currency into innovative procedures for the exchange and settlement of tokenized financial assets between financial intermediaries.
More in the article: Banque de France began to explore the Digital Euro
Sweden
The Swedish Riksbank initiated a pilot project aimed at developing the Swedish Crown Technical Solution project in electronic form.
To date, the e-krona project has produced two reports containing the analyzes and conclusions to date
More in the article: Sweden plans to digitize its currency (E-KRONA)
Switzerland
Swiss Sygnum Bank has created a digital version of the Swiss Franc (DCHF) to provide faster operations and transfers.
Each digital token will correspond to the actual amount of real Swiss franc that is stored in the Swiss National Bank of SNB.
More in the article: Sygnum bank launched digital Swiss Franc
Germany
On 3 April, Deutsche Bank said on its twitter: The COVID-19 pandemic is accelerating the rise of central bank digitalcurrencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards digitalcash according to our dbresearch colleague MarionLaboure.
Source: Twitter Deutsche Bank
Recall the Vice President of the International Monetary Fund, who spoke about the benefits of digital currencies.
Benefits:
- More efficient payment system
- Strengthening financial inclusion
- Stability is higher and the threshold for new companies to enter the payment system is lower
- Strengthening monetary policy
- Instrument to address new digital names
The vice president said that according to current surveys, more than 80% of the central banks are examining the CBDC.
More in the article: Vice-President of the International Monetary Fund talks about the benefits and risks of digital currency
As we can see, the digital revolution is coming and is only a matter of time when virtual currencies will be part and commonplace of our daily lives.