Covid Has Pushed the Development of CBDCs Five Years Into the Future

Covid Has Pushed the Development of CBDCs Five Years Into the Future

Guardtime, which is working with several central banks around the world in exploring the development of CBDCs, believes these currencies are now closer to being launched because the Coronavirus crisis has helped to further digitise all aspects of society. Also, improved networking and teleconferencing during the pandemic has increased levels of collaboration and discussion amongst central banks. Luukas Ilves , Head of Strategy for Guardtime comments "There is an increasing sense of a 'race to the moon' regarding central banks launching their own digital currencies because this could radically enhance their country's and currency's positions on the global economic stage. First-time movers could win long-term geopolitical advantages. "Not only has Coronavirus accelerated the digitisation of society, but it has also further transformed how we use money. It has limited physical interaction and reduced the use of physical cash, all of which has resulted in a surge in online sales and transactions and made CBDCs more viable. "Government-led digital transformation is usually slow, gradual, and fragmented. That makes the rapid and coordinated moves by Central Banks on CBDC across the world all the more remarkable. In their moves toward CBDC, Central Banks are showing how digital transformation can be done right."