Will the Coronavirus bring the end of cash? Could this crisis introduce Central Bank cryptocurrencies?

by Emmitt Barry, Worthy News Correspondent

(Worthy News) – The ongoing spread of the coronavirus has spurred government agencies to warn its citizenry against the use of paper currency and coins. Meanwhile, Central Banks around the world are considering the use of cryptocurrency in the future.

At the beginning of March, the World Health Organization said that “banknotes may be spreading the new coronavirus so people should use contactless payment systems instead.”

In order to halt the spread of the coronavirus, the Chinese central bank took extreme measures in February by literally “laundering” their own currency.

“All Chinese banks must now literally launder their cash, disinfecting it with ultraviolet light and high temperatures, then storing it for seven to 14 days before releasing it to customers, said the central Chinese government in a press release Saturday.”

Cash that comes from high-risk infection areas, like hospitals and wet markets, will be “specially treated” and sent back to the central bank instead of being recirculated. — Source: CNN

Two weeks later, the South Korean government also took action and removed all cash from use for 14 days to prevent the spread of the disease.

South Korea’s central bank said it was taking all banknotes out of circulation for two weeks — and burning some — to reduce the spread of the virus, according to Reuters. It follows China’s massive initiative around deep cleaning potentially infected cash with ultraviolet light and high temperatures, and in some cases, destroying it. The treated cash comes from high-risk infection areas, such as hospitals. — Source: CNN

Meanwhile, the Federal Reserve announced the possibility of a new cryptocurrency in order to replace the dollar.

In a NASDAQ financial report, the Fed announced a potential solution to prevent fraud and counterfeiting.

The Fed’s new solution is called “blockchain” technology. Blockchain is a database that maintains a growing list of records called blocks. Each block is time-stamped with a link to the previous block. The timestamp and link make changing or forging the data virtually impossible — effectively eliminating theft and fraud.

This technology will bring Fedwire into the 21st Century. Tentatively called Fedcoin, this Federal Reserve cryptocurrency could replace the dollar as we know it. – Source: NASDAQ

Last month, Federal Reserve governor Lael Brainard announced the Federal Reserve was investigating the issuance of the “Fed Coin.”

The Federal Reserve is looking at a broad range of issues around digital payments and currencies, including policy, design and legal considerations around potentially issuing its own digital currency. – Source: Reuters

The Federal Reserve also announced that it was investigating the potential for a “central bank digital currency.”

“We are collaborating with other central banks as we advance our understanding of central bank digital currencies,” — Source: Reuters

Meanwhile, the Major Central Banks announced plans to issue its own versions of digital currency.

Major central banks are cooperating to look at potential cases for issuing their own digital currencies, the Bank of England and the European Central Bank said. Source: Reuters

Time will tell if the coronavirus will ultimately usher in the end of cash as we know it, and bring the introduction of the widespread use of cryptocurrencies, while this may or may not happen — at least you know the central banks are considering the possibility.

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