It was perhaps predictable that the global Covid-19 crisis would drive people towards blockchain solutions and the use of cryptocurrency as they search for alternative solutions in a range of scenarios.
The crypto world is fast moving and we have already seen China surge ahead with its digital yuan (DCEP). As Cointelegraph says, “Instead of wallowing in a swamp of regulatory uncertainty, the Chinese government shifted its attention to benefits.” Indeed, China has used the impact of Covid-19 on its economy to accelerate blockchain tech development. Furthermore, we have learnt “McDonald’s and Starbucks are among a group of 19 restaurants, retail shops and entertainment companies taking part in a trial of China’s digital yuan.”
While this is happening in China, “the world is starving for digital cash and fintech apps,” Cointelegraph says. Due to the virus, people, and especially retailers, are looking for alternatives to cash, which could carry the virus. Some say that BTC and ETH will not be the most popular solutions in this case, but that stablecoins and CBDSs “could save the day.”
It does seem that China’s digital yuan has already overtaken Facebook’s Libra stablecoin in terms of major technical features such as the option to process transactions offline on mobile devices. Furthermore, its appears that the People’s Bank of China “is to promote the internationalization of the yuan as a way to make cross-border payments without the need to involve intermediaries that charge a huge fee and take a considerable amount of time to process such transactions.”
However, other banks are following China, such as the Bank of France, which has officially launched an experimental program for a digital euro, and South Korea has similar plans.
Undoubtedly, fast and cheaper payment methods are in high demand, resulting in a boom in payment apps, such as an app developed by the Switzerland-based company Aximetria enables users to make transactions in crypto and traditional currencies in one app while enjoying zero commissions. Plus, Clients can use the app regardless of citizenship and place of residence.
Our world has changed immensely over the last few months, so expect to see blockchain solutions become much more widely used, in the same way that home working has become widely accepted and likely to play a big part in the new normal.