BIS: Coronavirus will push central banks to create national digital currencies

Researchers at the Bank for International Settlements (BIS) are convinced that the coronavirus pandemic will acceleratedistribution of online payments and updates issues related to national digital currencies.

BIS New Report Says COVID-19changes the general public’s attitude to cash, even despite the prevailing opinion in the scientific community that the transmission of the virus through banknotes is unlikely.

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Researchers note that to start a countrycould expand the digital payment infrastructure by increasing the number of online, mobile and contactless options. However, the massive adoption of digital currencies (CBDC) could have an “extremely serious impact” on millions of older people, as well as those cut off from the banking system.

“If cash ceases everywhereaccepted as a means of payment, this may lead to the division of society into those who have access to digital payments and those who do not have such access ”, - researchers share their thoughts.

Thus, the organization is confident that CBDCable to meet the needs of society in digital computing. However, central banks should adapt to the current situation by “making payments contactless and, at the same time, publicly available”.

Recall, recently, representatives of BIS said that central banks do not consider the use of CBDC for cross-border payments.