June 25, 2024

BIS calls for use of CBDC in the context of the coronavirus pandemic

BIS calls for use of CBDC in the context of the coronavirus pandemic

The Bank for International Settlements (BIS), in its new report, called for the transition to electronic payments in the context ofpandemic COVID-19 and put into circulation digital currencies of the central bank (CBDC).

The rapid spread of the virus forcesreview traditional ways of doing business in different industries. The financial sector is no exception. According to the World Health Organization (WHO), COVID-19 is easily distributed through banknotes to the public. To solve this problem, BIS proposes to develop digital payment infrastructures and use the digital currencies of the Central Bank (CBDC).

The report notes that the pandemic has changedthe ratio of society to cash. Demand for fiat currency is falling significantly in many countries, and the number of users of mobile, card and online payments is growing every day. In this situation, CBDCs managed by central banks can quickly gain the necessary broad acceptance.

Despite a warning from the Ministry of Health, the prevailing opinion in the scientific community is that the probability of transmitting the virus through banknotes and terminals is much lower than when using cash.

Recall that last week, the Bank of France officially announced the launch of a pilot integration program for CBDC interbank settlements.