Central banks want to replace money with digital currency

Central banks want to replace money with digital currency
July 14
07:45 2020

The Covid-19 pandemic had a devastating effect on the world economy so far. However, it also changed the way people all over the globe see the money, and there is a possibility of switching to digital currency soon. An article by The Conversation explored this in detail.

Since the start of the pandemic, customers tried to avoid using cash payments in stores. Although there was evidence that the virus does not remain on cash, even up to this day many are still wary of using it. Chinese and South Korean banks even disinfected banknotes when Covid-19 reached its peak in those countries.

Some people depend on cash, so for them, cashless payments could create problems. However, the global choice during the pandemic has turned toward digital payment platforms and apps. Although these platforms were available prior to the quarantines, there is still a dramatic increase in use since the start of the pandemic.

These days, central banks of various countries also have to deal with arguments over regulations on digital assets. As such, the banks are exploring using digital currencies to replace cash. The digital form of traditional currency holds the name CBDC – Central Bank Digital Currency. Central banks are considering establishing accounts in CBDC instead of printing cash which loses its popularity.

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