The virus is expending quickly and everywhere, it is transmitted trough physical contact, coughing, and COVID-19 can also be transmitted through cash remittance. So a new report from the Bank for International_Settlements (BIS) has therefore examined the current fear or mood for cash in relation to coronavirus.
Therefore demand for cash alternatives in the media has continued to grow until today. Although the probability of transmission of the virus by liquid money is considered very low according to some doctors (confirmed by recent studies) the BIS describes that the demand for a cash substitute can increase quickly. This is where the role of the crypto comes in, so the pandemic could put more emphasis on calls to CBDC, emphasizing the value of having access to various means of payment, and the need for any means of payment to be resistant to a wide range of threats.
A lot of central banks around the world are already piloting the use of a CBDC or are trying to develop it. The most advanced is China, which is already testing the use of the digital yuan in some provinces of the country. The official launch of the CBDC is scheduled for the second quarter of this year and could have previously unknown effects on the economy and population. Recent research has shown that more than 40 central banks around the world are already working to develop a CBDC, especially countries with weak economies.
In addition, FED will inject $700 billion and the ECB more than 750 billion € into the market to stimulate the economy. These measures result in a continuous devaluation of the currency, so that in some countries, the population decide to look for other assets such as Bitcoin, Ethereum and XRP. Although the prices of Bitcoin, Ethereum, and XRP are still far from their historic past peaks, the central bank financial injection helps and catapults the price of bitcoin above the $7,000 bar and will continue to do so, right now Bitcoin is around or $7,304. Ethereum is also up 5.66% over the past 24 hours to $169.57 and XRP is up 3.21% to $0.1984.
To sum up, the tragic epidemic forces man to look for new viable and sustainable solutions to "save" the economy, and it turns out that cryptocurrencies might be the answer to our problems.