Digital Currencies and Stable Coins as Crisis Management Tools
According to summary Bank for International Settlements, fears that cash may be one of the channels for the spread of pathogens will increase the interest of central banks in the development of digital payment methods.
The COVID-19 pandemic has heightened public concern about this, despite measures taken by banks to sterilize banknotes. The risk that individuals and businesses move away from using cash could create a payment gap between those who have access to digital channels and those who do not..
According to the researchers, one of the options for solving this problem is to create a flexible and affordable payment infrastructure controlled by the Central Bank, such as the digital currency of the central bank (CBDC). This will require the development of capabilities to access non-banking and contactless interfaces suitable for the entire population..
The authors also note that the current crisis and falling demand for cash could take the development of digital currencies and better payment methods to a new level..
In the recent quarterly report The Bank for International Settlements also said that the peer-to-peer settlement system is the most progressive option for improving the payment area..
text: Ivan Malichenko, photo: Shutterstock