Topic: COVID-19 will pave the way for CBDCs - page 3. (Read 907 times)

The benefits of CBDCs far outweigh the risks of physical cash. This will indeed take some time to implement, since it's not easy enough to devise a Blockchain network from scratch. Governments can either go this route or simply use an existent blockchain ledger for launching digital currencies of their own. It looks likely that they'll choose the first option so they're able to manipulate the ledger at will. The development and introduction of CBDCs will depend on how long COVID-19 lasts within the mainstream world. The longer it takes, the faster we'll be able to see CBDCs being adopted by governments worldwide. I know that old people will find it hard to adopt this new form of money, but it's the way of the future. Either they'll adapt to the new banking system or be left behind.

With countries like the US, France, and even China exploring ways on how to adopt a CBDC, the new economy should begin real soon. Before you know it, physical cash will be a thing of the past making digital payments the new norm of world commerce. Even physical credit/debit cards will cease from existence, as everything will be done via a mobile device such as a smartphone or tablet. Both crypto and CBDCs will live alongside each other for many years to come. Just my thoughts

Personally I use practical reasoning to build my prognoses.

So far it seems that the crypto in general is becoming more practical as it doesn't require you going in the banks and allows contact free transactions.
I believe that the main cryptos (especially BTC) will significantly grow in price in the next 0.5 year

If they barely leave the house and aren't able to do online banking, what use is a debit card to them?  As an example, the neighbour picks up their shopping for them and drops it off to the house, the elderly relative then hands them cash for it (or will give them the cash once lockdown is lifted, anyway).  

Is the neighbour going to buy a card reader?  
Do we give the neighbour my elderly relative's card and trust they don't choose to steal money from the account?
Are we going to try and teach someone in their 80s how to use a computer for the first time in their life to order shopping online?

They need cash because they can't comprehend anything else.

The topic is about CBDCs, not cryptocurrencies, there are differences between both


Via the debit card.

There isn't really a lot to 'adapt', if you have $1 in your pocket or your bank account, NFC card, it's still $1.

When they invented the debit card they didn't care about people who won't know how to use it (senior people, etc) and they still don't.
20-30 years later it's one of the most used payment methods. You don't need to know how to write or read to use NFC card

"Everyone" has to mean everyone, though.  I have elderly relatives who can't even cope with on-demand TV.  They need a little paper magazine to tell them what time the TV shows they like are on.  It's all they've ever known.  We got them an on-demand box where you just select the show you want from the menu.  They returned it back to the shop for a refund.  Couldn't use it.

Tell me how they're going to adapt to digital money if they can't even work a modern television remote control. 

Even though the chances are right for CBCD, I think it is still not the time for it because, the whole world is more busy fighting the virus and is focus more on the welfare of their soverign so they could give proper support for their people. CBCD still needs time to be realized because, not all are ready and capable for this new move towards the future, every country still needs to study more about the platform, so they will know how to implement it properly, and we have more important lives at stake here.

Cryptocurrency is the future. There's no doubt about it. Once the government sees the advantage of cryptocurrency, they will adopt and surely more will follow. I am very sure one day or so it will surely be regulated in whole world.

Developed countries that can support this will be able to start their project and I think it will take years before we will be able to do this. I just hope I will be able to catch this change while I am alive. Though it will not be expensive to the one managing it, how about the users of it, the people that will be using the digital currency or coins. Not all of the people here are well-versed when it comes to technology.

Yes. This pandemic virus has become an eye opener that fiat currency is no longer good enough in this current time since it causes the fast transmission of virus. Government should think on  switching into digital currencies for the safety of all the people but i guess this will not happen in just a blink of an eye. It will take time and will pass more debates and public discussions before it will be legally implemented.

The Banque de France is quietly testing a CBDC on behalf of the European Central Bank. They published this "call for applications" last week: https://www.banque-france.fr/sites/default/files/media/2020/03/27/200327-call-for-applications.pdf


Not sure if this was catalyzed by COVID-19 per se since they were vaguely talking about digital currencies a few months ago already, but it may have accelerated things.

I think, OP, that your hypothesis is correct. While I personally still saw no media attention to that possible tendency, it's certainly right that the research on CBDCs could get a boost after the COVID-19 crisis.

In the case of COVID-19, as others like hatshepsut93 have written, an infection by viruses pegged to surfaces (like cash) is highly unlikely. A recent study in the (strongly affected) German Heinsberg region confirms that not even in houses of families whose members were infected by SARS-CoV2 it was possible to cultivate virus from surfaces like door knobs or toilet seats.

However, the act of payment when using cash or a "traditional" credit/debit card involves more physical contact and more proximity than a "contactless" payment (e.g. by NFC technology) and thus it greatly can reduce the risk of infection in that moment. Also, there are other potentially deadly viruses where a transmission on surfaces is possible. So I think the COVID-19 crisis will probably influence the discussion about CBDCs. And this can also be a chance for cryptocurrencies and Bitcoin.

Exactly. I don't see any other way but for governments to start issuing digital currencies for everyone's benefit. This can save costs, and reduce risks associated with carrying physical cash (germs, bacteria, not eco-friendly). The recent outbreak will greatly contribute towards the development of government-backed digital currencies as we speak. Already, the US has proposed a bill for a "digital dollar". On the other hand, China has been working extensively on launching a "digital yuan" of its own. As people become more interconnected in the digital realm as a result of social distancing from the virus, there will be an increase in the use of digital services worldwide.

The benefits of CBDCs relative to printing cash are numerous. The risk factor of transmitting germs or bacteria from hand to hand will be eliminated, as everything shifts to the digital realm. If governments want to "print" more money, they can do so virtually by increasing the digital currency's inflation rate or total supply. Banks worldwide will act as nodes or validators of the country's underlying Blockchain network. People will still trust CBDCs because they'll be backed by the full faith and credit of the government (just like it's the case with physical cash today). If the pandemic lasts for a long time, you could expect CBDCs to become a reality sooner than you've ever imagined.




It's odd that the US "passed away" from creating a digital dollar when other countries have already started working on digital currencies of their own. We all know that the US doesn't want to be left behind in technological innovation. Maybe the government is waiting for another country to officially launch its digital currency in order to begin development of a digital dollar?

Anyhow, I believe this pandemic will trigger massive development of CBDCs within the mainstream world. It'll be unsafe or unsanitary to use physical cash, leaving governments with no choice but to create digital currencies of their own. At least, the bill proposed by the US for creating a digital dollar is still there. If the pandemic lasts for long, you could expect the government to make the right decision by approving the creation of the digital dollar. This brings many benefits that are hard to ignore. For instance, bank transfers would settle instantly (instead of taking days) and fees would become cheaper like never before.

We'll have to wait and see what happens to the development of the COVID-19 outbreak in the upcoming days.

I guess it is. Those countries that are treating crypto as illegal might change their stance now.
But CBDCs will take time to have really good progress in actual implementation.
But yes, this situation may pave the way for them to proceed.

Very likely to happen in the next two years, if things continue the way they are.

Consider also that they have been able to put tracking chips inside pills, which could store all the data from the person who took the pill. In this way, the centralized cryptocurrency could be authenticated through the signal from the chip, with a 5G smartphone acting as intermediary.

5G cover a wide range of frequencies, and above 20gHz it can pass through the pores of the skin (a process called "electroporation"), thus making a bridge between the 5G smartphone and the chip inside the body. The chip would confirm who is doing the transaction with the smartphone. If its the right person, then the transaction is confirmed, without the need of a miner.

Needless to say, these centralized cryptocurrencies will be PoS, not PoW, so governments would be able to manipulate the supply as they seem fit.

From some of the explanations above, the point is that because physical money has the potential to become a coronavirus carrier, there is no alternative (TINA) besides adopting CBDC. At this time, cryptocurrency players should join this momentum to educate about cryptocurrency as an alternative payment media other than digital currency to be issued by the central bank.

I think it's way too early to be predicting the end of cash based on a single viral outbreak that so far hasn't proven to be extremely fatal.  Serious, yes, but there's no way to be completely risk-free as far as contracting an infection goes.  Physical cash has always carried the risk of being a fomite, if not for COVID-19 then other viruses that can certainly make you really sick.

So if cash were to be eliminated, people would still be touching keypads on credit card readers, doorknobs, and everything else.  I don't know, I'd hate to see this situation used as an excuse to do away with physical cash, because it's still the most anonymous form of money we have--and I don't think there's a compelling reason to.

I think it's going to be a couple more decades before we reach the abolition of cash.  There are still enough elderly people who are complete technophobes.  Some of them still want to pay for things by cheque.  People like that simply wouldn't cope.

It would still pass on lots of debates and consideration before this plan would come true.Yeah, fiat now is considered to be one of the gateways of virus transmission but it doesnt mean that this would be enough
for government to switch up to digital payments in a blink of an eye.

There might be talks but it would still takes time and as said it would need to be polished first before switching into a whole new system.

Digital payments aren't perfectly sterile either - people touch their phones, then touch their faces and get infected easily. And cash isn't as infectious as people might think, WHO and other experts never claimed that it's a major vector for spreading this or any other disease. I believe the governments understand it and aren't likely to take any additional measures like speeding up the development of digital currency. This isn't something you want to rush, it needs to be well-tested and polished, and I think at this stage those currencies are merely proposals.

Of course, it will change concepts and may speed up the issuance of digital currencies, but it will not finish using cash or paper money.
the acceptance of new technology will not be fast, and therefore the alternative will be to rely heavily on bank cards, something that actually happened during the Corona crisis in South Korea and China^[1].

Do not forget that the transition to "online world" does not necessarily mean the use of digital currencies^[2], just as digital currencies do not mean that we may witness an increase in the demand for cryptocurrencies.

[1] https://edition.cnn.com/2020/03/07/tech/mobile-payments-coronavirus/index.html
[2] https://www.cnbc.com/2020/03/16/electronic-payments-look-more-appealing-as-coronavirus-spreads.html