Benoît Cœuré, director of the Bank for International Settlements Innovation Center, recently found that digital currencies issued by the central bankor CBDC, were “more focused” in the midst of the corona virus pandemic.
During a webinar organized by Accenture, the Bretton Woods Reinvention Committee, and the Digital Chamber of Commerce on April 17 Cœuré said that “the crisis has exposed the value of technologies that enable the economy to work remotely”..
It was also found that the Bank for International Settlements (BIS) is investigating tokenization as a possible solution for restarting industries during quarantine.
The coronavirus pandemic is accelerating the decline in cash
The head of the Innovation Hub highlights the likely decline in cash payments due to the COVID-19 pandemicand claims that the current economic climate has given rise to further discussion about CBDCs:
“The current discussion about the central bank’s digital currency is also clearer. Whether Covid-19 will accelerate the disappearance of cash is an open question. However, it already shows how important it is to have access to different payment methods and that each payment method has to be resistant to a variety of threats. “
Cœuré notes that “payments have been at the forefront of technological change recently”and argue that “Moving quickly to digital payments can improve costs, transparency and convenience for billions of consumers.”
BPI analyzes the DLT trends for the financial picture after completion
However Coeur explains that “Covid-19 will accelerate the digital transition beyond payments” and asks: “Will customers find their way back to bank branches if the barriers are lifted and the economy gets going again? Will this accelerate the transition to virtual banking?”
With this pretext, Cœuré stated that the BIS Innovation Center will continue to study “financial technology trends” and their impact on central banks and regulators.
“Issues such as tokenization, open banking and the use of technology to support regulatory compliance and regulators (‘regtech’ and ‘suptech’) are high on our agenda,” he added.
early April The BIS released a bulletin, noting that CBDCs could reduce the risk of coronavirus transmission through banknotes. However, the report found that CBDCs can alienate the elderly and non-banks.
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