People do not go out to protect themselves from coronavirus, follow the social distance rule, wear masks and try not to touch dirty things. Paper and coins are among the things that people are trying to stay away from now.
After the statements made by the World Health Organization, we have seen how dangerous physical money can be. It is believed that the coronavirus can live on the surface of paper money for several days, thereby infecting humans.
Digital Money Thought
The International Payments Bank (BIS) believes this is a very important development. According to BIS researchers, after learning this information, people began to stay away from physical money and turn to digital, contactless payment methods. At this point, the following question comes to mind: Will we see the digital central bank money over time?
BIS’s answer to this question is ‘maybe’. Research by BIS shows that people have become interested in digital payment methods, especially because of the coronavirus. Central banks may seriously consider developing their own digital money if people reduce their use of physical money in the coming months and years.
Currently, Venezuela has issued its own digital currency, the Bahamas is testing its own digital currency, while China is still in the development phase of the project. We know that there are some studies in this direction in our country. According to the International Payments Bank, more central banks can take steps in this direction.
There are some problems
People turned to digital payment methods because of the coronavirus to divert, but there are still major problems. At the beginning of these, people still prefer to use physical money.
We have mentioned a few weeks ago, we shared an article about the digital transformation process in Turkey and the money usage habits in the country. As you can see in this article, there are still a lot of people across the country who use (or even have to use) fiat money.
If a central bank is considering developing its own digital money, first of all, these people need to develop an infrastructure where they can use digital money and prepare a suitable environment. According to the International Payments Bank, this may be the biggest problem for a central bank that wants to develop its own digital money.