Impact of COVID-19 on money digitization
COVID-19 pushed people to look for alternative ways to invest their savings. Blockchain and cryptocurrencies are becoming increasingly popular. More countries are also looking for blockchain-based solutions. How will this affect our lives?
In the crypto market, everything changes faster than in any other market. Innovative solutions seem to be coming in even faster since China accelerated the Crypto Yuan project. This is the country that was the first to be affected by the coronavirus pandemic. However, instead of slowing down work on its own crypto project, China has accelerated it after the controlling pandemic. Has the crisis situation taught this country that investing in fintech solutions is the best way to avoid a crisis?
More and more countries are blockchain-friendly
COVID-19 has forced people from all over the world to look for a way to minimize the negative effects of lockdown. At the same time, everyone tried to avoid paying in cash and looking for alternatives. The case concerns both individual citizens and authorities. Not only China decided to try to digitize its currency. The Central Bank of France also announced tests of CBDC – Central Bank Digital Currencies. Such solutions are already in the testing phase in Sweden and the Bahamas.
COVID-19 speed-up the popularization of cryptocurrencies
The cryptocurrencies developed and spread at a fairly rapid pace, but the coronavirus has significantly accelerated this process. Users looking for alternatives are choosing blockchain, and trades using cryptocurrencies are becoming increasingly available in many shops and restaurants.
How will digitization change the everyday life of an average user?
What will really change and how will we feel about the possible introduction of CBDC to our lives?
All transactions will become transparent
If the cash will be fully replaced by CBDC transactions, then, contrary to the dreams of crypto-anarchists, each of them will be transparent. This will certainly make it more difficult to manipulate and defraud, so corruption will naturally decline.
Better technologies and greater availability
If more people will join the crypto trade, blockchain technology will move forward significantly. Already now blockchain-based solutions provide users with cheap and fast transactions, both local and international. With globalization and the shifting of more and more areas of life to the Internet, which offers unlimited possibilities, fast inter-country payments seem essential.
Nothing will really change
Many people use cryptocurrencies as if they were using the money they know so far. They keep their savings in them and buy everyday goods like coffee and clothes. In such a rapidly changing world, it is natural that banking solutions are also changing. It seems that apart from cheaper and faster transactions it will not have a significant impact on the life of the average user.