Bank for International Settlements (BIS) has issued a new bulletin in which described several advantages of using central bank digital currencies instead of fiat currencies to withstand a large range of shocks, including pandemics and cyber attacks.
The bulletin says the Chinese coronavirus pandemic has led to unprecedented public concerns on viral transmission via physical cash.
The number of Google searches pertaining to both "cash" or"virus" is at record highs right now.
According to studies, several viruses, including bacteria, fungi, and parasites can survive on banknotes and coins "for hours or days." Meanwhile, the COVID-19 virus can survive on surfaces for three hours in the air, 24 hours on cardboard and even longer on other hard surfaces.
Given the current crisis, CBDCs, in particular, should be designed with access options for non-banking and (non-contact) technical interfaces suitable for the entire population. In this way, a pandemic could sharpen calls for a CBDC by emphasizing the value of access to various means of payment and the need to ensure the sustainability of any means of payment against a wide range of threats.
Bank in 2018, the BIS claimed that cryptocurrencies such as bitcoin (EXANTE: Bitcoin), ether (ETH), and stablecoin tether (USDT) do not serve the primary functions of money, and are, therefore, a poor store of value.
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